Claranova enters into exclusive discussions for potential sale of its PlanetArt Division

Claranova announced the company has entered into exclusive discussions with General Atlantic Credit’s Atlantic Park fund and the management team of PlanetArt for the potential sale of its PlanetArt division. This potential transaction would value the division at approximately $160 million US on a cash-free, debt-free basis (or approximately US $180 million of equity value, including excess cash and intercompany loans and debt), subject to final adjustments. In recent months, Claranova has been cleaning up PlanetArt’s finances, including buying out minority shareholders.

PlanetArt operates a portfolio of websites and mobile applications used by tens of millions of customers worldwide to create unique personalized products. PlanetArt’s suite of solutions includes the FreePrints mobile applications and the Personal Creations, SimplyToImpress, CafePress, Gifts.com, and I See Me! brands. As of June 30, 2024, PlanetArt’s revenues represented €365 million, representing 74% of the group’s revenues, and its Normalized EBITDA represented €20 million, or 43% of the group’s Normalized ROC. Following this transaction, Roger Bloxberg, CEO, and Todd Helfstein, chairman, would become significant shareholders of PlanetArt LLC and would also continue to exercise their respective functions.

This potential transaction remains subject to the completion of a satisfactory due diligence process, the negotiation and execution of definitive agreements, and customary conditions precedent in this area. The final completion of the transaction is expected for the second quarter of 2025 once all conditions precedent have been satisfied. To support this process and ensure the absence of conflicts of interest, Claranova’s Board of Directors has set up a special committee composed of three independent directors, with the necessary expertise to, among other things, solicit an expert opinion on the fairness of this potential sale and submit a recommendation to the Board of Directors. Given the importance of this transaction to Claranova, it will be submitted to a vote of Claranova’s shareholders, as well as the details of the allocation of the expected proceeds of the sale.

According to a press release, the transaction would allow Claranova to focus on its most profitable activities and become a leading pure player in software publishing while at the same time offering a simplified view of its organization.

“This transaction is in line with our ‘One Claranova’ strategic plan since it would improve our profitability ratios and allow us, at the same time, to significantly accelerate our debt reduction,” said Eric Gareau, CEO of Claranova. “Claranova would thus become an integrated group focused on software publishing and operational excellence. We believe that this would accelerate our return to profitable growth and offer us new development opportunities in order to create long-term value for our shareholders.”