The Canada Pension Plan Investment Board has agreed to acquire a 20% stake in European digital solutions provider Team.blu for €550 million.

The proposed deal is expected to have far-reaching commercial real estate implications. Team.blue has numerous physical locations across Europe and has an ongoing aggressive expansion program based on mergers and acquisitions.

The transaction values Team.blue at €4.8 billion, ranking it among the largest privately owned technology companies in Europe, according to CPPIB. Toronto-based CPPIB joins Hg Capital, the largest single investor, in Team.blue’s ownership group.

Other investors include Jonas Dhaenens, the company’s founder and president; co-founder Ali Niknam and the wider management team led by CEO Claudio Corbetta.

Bloomberg reported that CPPIB is buying its stake from a fund controlled by Hg, citing people familiar with the matter. If all goes according to plan, Hg will provide further funds for product innovation and expansion through acquisitions.

Founded in 2019, the firm has about 2,500 employees and serves 3.3 million small-and-medium-sized businesses in 22 countries. Services include Web hosting, domains, e-commerce, online compliance, lead generation and application solutions.

Team.blue originated in Belgium through a merger with Campbell, TransIP and Register groups. According to CPPIB, the company is now eight times its original size.

The deal has been signed and is subject to customary conditions and regulatory approves, said CPPIB.

Photo: Hg