London-based Palamon Capital Partners has sold its stake in DAVID, a German-based provider of software solutions to television and radio companies, to Munich-based Silex Media for an undisclosed amount. DAVID generated sales of €5.4 million in 2006.
Palamon originally invested in DAVID and its parent company OmniBus Systems in 2001. Holger Kleingarn, partner at Palamon, said: “The business attracted us for three reasons – its impressive market share, its strong customer loyalty, and its US market position.”
Europe’s software sector has not traditionally been a destination for private equity capital. Said Kleingarn: “It is amazing that there has been so little private equity activity in the European software sector. It is a very fragmented market with considerable consolidation opportunities.”
Founded in 1999, Palamon is currently investing its second fund, which closed in July 2006 on €670 million, and has €1.1 billion under management.