Data network service operator MyStream used Intralinks to ensure its acquisition by the Coriolis Group was as secure and smooth as possible.
Founded in 2003, MyStream operates a private telecommunication network in France and beyond, offering data networks, IP telephony services, Internet access, hosting, cloud and captive portal services.
Employing 30 people, and with a revenue of €6.4 million in 2014, MyStream currently manages 5,000 sites across Europe, along with converged networks for three data centres in France.
In February 2015, MyStream was acquired by the Coriolis Group, a key player in the French telecommunications market. Edmond Escabasse joined MyStream as transition CFO roughly six months before the start of the acquisition process.
When the acquisition process started, Escabasse quickly identified the need to open a data room in order for MyStream to exchange information securely and in a compliant manner with potential buyers. At that time, MyStream’s management was used to using consumer-grade solutions, such as Dropbox, for sharing files, but Escabasse advised that these tools were neither secure, nor compliant enough for an acquisition, and he began to look for secure alternatives.
Escabasse explained that, as MyStream was a start-up with no real administrative body, a reputable data room would ensure the deal ran as smoothly and securely as possible. In addition, should the deal fail for any reason, or if there was any type of dispute post-close, a data room would provide an historic record of all the information and documentation that MyStream had shared with potential buyers.
Ultimately, Escabasse recognised that the compliance risks were way too high for MyStream to not engage with an experienced data room provider.
MyStream’s financial advisors had a positive experience of using Intralinks for Mergers & Acquisitions on the buy-side of a previous deal, and so they were happy to use the solution again once MyStream suggested it as a potential option.
Intralinks® also provided a customer support in Paris in the form of a local project manager, who was able to talk to both MyStream and its buyers through the entire implementation journey and subsequent use of the service. Having this support was another deciding factor for choosing Intralinks.
Without using Intralinks to create a data room, Escabasse believes it would have been really difficult to gather and register the necessary information in the timeframe required, ultimately jeopardising the deal.
He believes the platform saved him between two and three hours a day in administration alone and that, without it, registering the information would have meant employing a full-time administrator for at least three months. In France, that would equate to approximately €6,000.
According to Escabasse, time and momentum were crucial to the deal’s success. By allowing MyStream to upload information and respond to buyer requests throughout the process, Intralinks ensured the deal maintained momentum, demonstrating to the buyer that MyStream remained interested in moving forward with the acquisition.
Having a compliance archive in the form of a DVD also reassured Escabasse. In the event there was an audit, dispute or any future questions surrounding the deal, the sellers had the trackable audit trail at their fingertips.
Following a comprehensive process, and with the support of Intralinks, Corolis Group acquired MyStream in February 2015.
“Intralinks ensured the MyStream and Coriolis Group deal maintained momentum. Without it, the entire transaction could have been jeopardised.
Without Intralinks, it would have been much more difficult to gather the necessary information securely and quickly. We would have also needed more resources on board. It saved us a lot of time and money.”
– Edmond Escabasse, transition CFO, MyStream