I-TRACING stands as a leader within the cybersecurity sector, established in 2005 by co-founders Théodore-Michel Vrangos and Laurent Charvériat. The French independent pure-play provider of cybersecurity services covers a range of services within its market including cyber defense, consultancy and solution engineering/integration, support and managed services.
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600+
cybersecurity experts
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€115m
turnover in 2023
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30%
average annual growth
In 2021, Ardian’s Private Credit team recognized the potential of I-TRACING - agreeing to a €60 million debt financing and affirming its confidence in the company’s growth trajectory. This investment, structured as €40 million drawn at closing and a committed €20 million line for acquisitions, underscores Ardian’s strategy of investment with robust fundamentals and promising prospects.
We aimed to accelerate our growth both in France and internationally - Ardian has been both exceptionally responsive and creative in setting up a financing that is perfectly suited to the way we intend to move forward.
The company has since burgeoned into a global player with operations spanning six countries with 600+ cybersecurity experts catering to over 400 clients worldwide, ensuring a follow-the-sun support system and next-generation cybersecurity solutions. With a turnover of €115m in 2023, the average annual growth stands at an impressive 30%, consistently outpacing industry standards.
We are trying to support I‑TRACING’s growth plans wherever we can. For example, we have helped to open doors with several potential partners and clients. We aim to be a real partner in the company’s growth and not just a credit investor.
A growth strategy through strategic collaboration
I-TRACING stood out to Ardian as a financial solutions provider due to its strategic positioning in a fast-growing and non-cyclical market. Fueled by digital transformation and increasing cyber threat awareness, underpinned by its comprehensive suite of cybersecurity solutions catering to mission-critical needs, along with enduring relationships including prestigious blue-chip clients, I-TRACING represented an attractive proposition. In addition, the company was helmed by two visionary founders who demonstrated unwavering commitment by rolling over a significant portion of their investment.
I‑TRACING is exactly the type of company that fits our investment strategy. The company has committed leadership from its two founders, Théodore-Michel Vrangos and Laurent Charvériat, who have been active in the cybersecurity industry for several decades, bringing with them an exceptional depth of experience. And finally, it is a high‑quality business based on long‑term contracts with loyal customers. It has excellent visibility on its revenues and converts a very high percentage of EBITDA into cash.
Since arranging senior financing to I-TRACING, Ardian became both a financial and strategic partner; the support surpassed financial backing - actively assisting in potential acquisitions, leveraging network for visibility and facilitating connections with key partners and clients. This collaborative approach solidified Ardian's commitment and enabled positive outcomes.
Commitment to sustainability
Recognizing Ardian’s sustainable values, we incorporated ESG criteria into the funding package, setting the stage for transformative change for I-TRACING. This innovative approach not only aligned with Ardian's values but also incentivized I-TRACING to enhance its ESG performance through a unique ratchet mechanism tied to interest rate reductions.
First of all, we believe that I TRACING, by strengthening the IT operations of its clients and improving the security of their systems, contributes actively to building a more resilient and sustainable future. This is also one of the first transactions in which we have granted an ESG ratchet mechanism. This provides an incentive for the company to meet certain ESG performance criteria by granting a reduction in the interest rate.
Under Ardian's guidance, I-TRACING embraced sustainability wholeheartedly, achieving significant milestones since 2022, from appointing an ESG manager to producing comprehensive reports and measuring emissions.
There are five criteria that are assessed every year, including measuring our greenhouse gas emissions and publishing an annual CSR report. If we meet three or four of these criteria, I TRACING is eligible for a five basis point reduction in the interest rate. If we meet all five, the reduction is ten basis points. Incorporating an ESG dimension into the financing agreement was a plus point for us and it definitely contributed to our choice of Ardian as our debt provider for this transaction. It’s a win win approach for everyone. We can achieve a lower cost of borrowing and Ardian improves its credit risk at the same time.
Ardian's strategic investment in I-TRACING exemplifies the power of successful partnership. By aligning financial returns with sustainability, Ardian and I-TRACING have not only achieved remarkable growth but also paved the way for a more sustainable and resilient future. We remain committed to fostering sustainable growth and enduring value creation, setting a benchmark for future investments in the dynamic landscape of cybersecurity.
Deal Team
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Ardian
