Bain Capital Weighs Deal for IT Services Provider Solutions 30

(Bloomberg) -- Bain Capital is considering a deal for European technology services provider Solutions 30 SE, according to people familiar with the matter.

The buyout firm has been speaking with advisers about the potential investment, according to the people, who asked not to be identified discussing confidential information. 

Shares of Solutions 30 jumped as much as 15% in Paris trading Friday, the biggest intraday gain in nearly two months, before falling back. They were up 2.3% at 9:57 a.m. in France, giving the company a market value of about 725 million euros ($784 million).

Deliberations are ongoing, and there’s no certainty Bain will decide to proceed with a formal offer, the people said. Representatives for Bain and Solutions 30 declined to comment. 

Solutions 30 has 15,700 engineers serving customers in industries including telecommunications, security, energy and retail, according to its website. Founded in 2003, it operates in about 10 countries across Europe.

The company has previously been targeted by short sellers including Muddy Waters Capital LLC. In December 2020, Solutions 30 said it hired an external auditor to look into allegations made in an anonymous report. 

The review eventually cleared Solutions 30 of wrongdoing, but the company’s shares have remained under pressure. In May last year, the company said EY couldn’t sign off on its latest full-year accounts. It has since hired PKF as its new auditor. 

Following this turmoil, Solutions 30 said it was considering options including finding an anchor investor or delisting. The company announced in July it hired Rothschild to advise on the strategy for strengthening its shareholder structure. 

“The managers have always indicated that a transaction could go as far as a delisting if the valuation retained by the buyer(s) offered a significant premium,” Oddo BHF analyst Emmanuel Matot wrote in a note. 

A sell-off in technology and software stocks globally is prompting financial investors to target publicly-listed companies in the sector amid more attractive valuations. A consortium including Accel-KKR offered to buy Finnish software company Basware Oyj earlier this month. Buyout firm Cinven said this week it was considering a potential bid for U.K.-listed software provider Ideagen Plc.

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