Claranova enters negotiations to sell PlanetArt Division for up to $160 million

PARIS: Claranova, a technology group, has announced it is in exclusive negotiations with General Atlantic Credit’s Atlantic Park fund and PlanetArt’s Management Team for the potential sale of its PlanetArt division.

The transaction could value PlanetArt at $160 million on a cash-free, debt-free basis, or approximately $180 million of equity value including excess cash and intercompany loans and debts, subject to final adjustments.

PlanetArt manages a portfolio of websites and mobile applications used by tens of millions of customers worldwide for unique personalized products. Its range includes FreePrints mobile apps and brands such as Personal Creations, SimplyToImpress, CafePress, Gifts.com, and I See Me!.

As of June 30, 2024, PlanetArt’s revenue represented 365 million euros (74% of Claranova’s revenue), and its EBITDA accounted for 20 million euros (43% of Claranova’s EBITDA). Following the transaction, Roger Bloxberg and Todd Helfstein would become significant shareholders in PlanetArt LLC and continue as CEO and President, respectively.

The proposed sale is contingent on satisfactory due diligence, negotiation, execution of definitive agreements, customary closing conditions, and regulatory approvals. Claranova aims to close the deal in the second quarter of 2025.

To ensure no conflicts of interest, Claranova’s Board of Directors has formed a special committee of three independent directors to solicit an expert fairness opinion and provide a recommendation to the Board. The transaction, significant for Claranova, will also be submitted to a shareholder vote.

This sale would enable Claranova to focus on its more profitable activities, becoming a leading pure player in software publishing with a streamlined organizational structure.

“This transaction aligns with our ‘One Claranova’ strategic plan, improving our profitability ratios and accelerating debt reduction,” said Eric Gareau, Claranova’s CEO. “Claranova would become an integrated group focused on software publishing and operational excellence, speeding up our return to profitable growth and creating long-term value for our shareholders.”