Claranova — Proposed sale of PlanetArt

Claranova (PAR: CLA)

Last close As at 18/03/2025

EUR2.30

0.05 (2.22%)

Market capitalisation

EUR132m

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Research: TMT

Claranova — Proposed sale of PlanetArt

Claranova has entered into exclusive negotiations to sell PlanetArt. The deal is expected to close in Q225 and is subject to shareholder approval. The deal values the business at $160m/€153m enterprise value and $180m/€172m including net cash in the business. Factoring in ownership of the business by the PlanetArt management team, we estimate that Claranova will receive net proceeds of c $118m/€113m, which we expect the company to use to reduce debt. Post this disposal and assuming Claranova finds a buyer for myDevices, this will leave the company as a pure play, high-margin software business.

Katherine Thompson

Written by

Katherine Thompson

Director

Software and comp services

Disposal of subsidiary

19 March 2025

Price €2.63
Market cap €152m

$1.09/€

Net cash/(debt) at end FY24

€(102.0)m

Shares in issue

57.2m
Free float 84.0%
Code CLA
Primary exchange NXT PA
Secondary exchange N/A
Price Performance

Business description

Claranova consists of three businesses focused on mobile and internet technologies: PlanetArt (digital photo printing; personalised gifts), Avanquest (consumer software) and myDevices (IoT).

Analyst

Katherine Thompson
+44 (0)20 3077 5700

Claranova is a research client of Edison Investment Research Limited

Note: EBITDA is pre-IFRS 16. PBT and diluyed EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments. From FY25e, excludes myDevices as held for sale.

Year end Revenue (€m) EBITDA (€m) PBT (€m) EPS (€) P/E (x)
6/23 507.0 32.5 2.2 0.05 57.2
6/24 495.6 45.9 5.8 0.09 29.2
6/25e 498.4 49.5 25.8 0.34 7.7
6/26e 535.0 55.7 30.8 0.41 6.3

Claranova has entered into exclusive negotiations with General Atlantic Credit’s Atlantic Park fund and PlanetArt’s management for the potential sale of PlanetArt. This would value the business at $160m/€153m on a cash-free, debt-free basis or $180m/€172m taking into account excess cash and intercompany loans and debts, subject to any adjustments. We note that this is for 100% of PlanetArt. The current management team, Roger Bloxberg and Todd Helfstein, own units in the business that are exercisable on a potential liquidity event, giving them 10% of the business each. They will remain with PlanetArt and continue as CEO and president respectively.

The deal is subject to shareholder approval and completion of due diligence and regulatory approvals with the target of closing the deal in Q2 CY25 once all conditions have been met. The board has set up a committee of three independent directors with the power to solicit an expert fairness opinion and submit a recommendation to the board.

Based on FY24 revenue of €365m and our forecast of €371m for FY25e, this values PlanetArt on an EV/sales multiple of 0.42x for FY24 and 0.41x for FY25e, at a discount to its closest peers, Cimpress (0.7x FY25e) and CEWE (0.9x FY25e). On FY24 EBITDA of €19.5m and FY25e EBITDA of €22.3m, this values the business on an EV/EBITDA multiple of 7.8x for FY24 and 6.9x for FY25e (Cimpress 4.9x FY25e, CEWE 5.6x FY25e).

On closure of the deal, Claranova will consist of the Avanquest software business (FY24 revenue €121.9m, EBITDA €27.6m) and the myDevices IoT business, which is held for sale. We would expect the proceeds to be used to pay down debt, which pro forma stood at €159m at the end of FY24 (including debt of €20m taken out in November to buy out the remaining PlanetArt minority interest).

Updating our sum-of-parts valuation, we calculate an enterprise value after minority interests of €312m and an equity value of €175m or €3.1 per share. This assumes Claranova receives 80% of the value of PlanetArt and incurs costs of €10m in the sale process.

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