Cafeyn announces a growth investment from Bregal Milestone to accelerate its international expansion
Bregal Milestone — 26 Nov, 2020
Cafeyn, the leading digital media streaming platform, announces a growth investment from Bregal Milestone to accelerate its international expansion
- With over 2 million active users, Cafeyn is the leading European digital media streaming platform
- Cafeyn has a catalogue of over 2,500 newspapers and magazines and offers the best reading experience in the market
- Drawing on the experience of its management team, its network of 500+ publishers and distribution partners, and Bregal Milestone’s support, Cafeyn intends to strengthen its international leadership position in the fast-growing information streaming vertical
- The investment is the seventh transaction out of Bregal Milestone’s €495 million fund and marks the first transaction in France
Cafeyn announces it has secured funding from Bregal Milestone, a European growth capital fund. The funding will support Cafeyn’s mission to create the best information streaming product and will bring additional resources to accelerate its international expansion and external growth strategy.
The company, which was founded by Ari Assuied, continues to grow 40% year-on-year and has expanded its team significantly from 50 in 2018 to an overall headcount of 170 by the end of the year, including the recent acquisitions of miLibris and Blendle. The investment will drive forward product innovation and enable the company to pursue its growth strategy in Europe and globally.
The investment comes at an exciting time for Cafeyn since it has seen an unprecedented rise in usage over the last 12 months, with a reach now exceeding 2 million users. The global press and magazines industry is worth around £110bn and experienced a huge growth in digital adoption as a result of a structural change in media consumption habits, which has been accelerated by the current pandemic.
Earlier this year, Cafeyn announced a strategic partnership with SFR and the introduction of a number of leading UK newspapers to the platform, adding The Independent, The Guardian, The Observer and The Evening Standard. It acquired miLibris, a SaaS platform enabling its publisher partners such as Les Echos, L’Equipe, Daily News and Grupo Godo, to digitalise, enrich, distribute, and monetise their content. The Group also made the acquisition of Blendle, the largest digital news platform in the Netherlands, adding leading Dutch and European newspapers such as De Volkskrant, HP De Tijd or Der Spiegel and establishing Cafeyn as the European leader in its market.
In connection with this investment which marks Bregal Milestone’s first transaction in France and the seventh out of its €495 million fund, Philippe Lautenberg, Managing Partner, and Rob Hetherington, Head of Milestone Performance Partners, the firm’s in-house value creation team, will join the Cafeyn Board of Directors.
I am delighted by this collaboration that will drive further growth and internationalisation for Cafeyn. Bregal Milestone is a perfect fit for Cafeyn given their digital and media expertise, as well as their willingness to support fast-growing companies as a hands-on partner. Their global network and strategic support will allow us to accelerate our international expansion, by way of both organic growth and additional bolt-on acquisitions.
Since its creation in 2006, Cafeyn’s ambition, driven by a deep passion for the media, has been to reconnect readers to the content that is relevant to them through an ultra high-performance platform. Under Ari Assuied’s leadership, Cafeyn has assembled an international management team combining talent in publishing, digital media, e-commerce, data, and technology. Drawing on its accumulated expertise and a network of 500+ publishers and strategic distribution partners (telecom operators, pay-TV, e-commerce platforms, etc.), the platform today offers more than 2,500 titles accessible on all digital devices. Cafeyn is available in France, the United Kingdom, Canada, Ireland, Belgium, the Netherlands, Germany, Austria, Switzerland, Italy, Spain, and French-speaking African countries, and aims to accelerate its international expansion. Since its inception 14 years ago, Cafeyn has continued to rapidly innovate the way it promotes information streaming at a time when the industry is reinventing itself and the way the general public consumes information is changing.
About Bregal Milestone
Bregal Milestone is a growth capital firm managing a €495 million pan-European fund dedicated to making investments in high-growth European companies. The firm provides flexible capital solutions and strategic assistance to support market-leading companies across a wide variety of transaction situations. Targeted sectors include technology, technology-enabled consumer and business services, and healthcare. Bregal Milestone is part of Bregal Investments, which is an operating company of COFRA, with over €15 billion invested to date.
List of advisors
- M&A: Cambon Partners (Laurent Azout, Alexandre Aymard)
- Legal: Argos Avocats (Julien Sanciet)
- VDD Finance / Tax : KPMG (Philippe Blanadet, Benoit Luscan / Jérôme Talleux, Edouard Mouveaux)
- Management & Tax : Jeausserand Audouard (Elodie Cavazza), DWF (Vincent Lazimi)
- Legal : Gowling WLG (Patrick Mousset)
- Finance & Tax : PwC (Nicolas Veillepeau, Xavier Etienne)
- Commercial : EY-Parthenon (Pierre Bosquet)
We are highly enthusiastic to partner with Cafeyn for this next phase of growth. With a catalogue of over 2,500 newspapers and magazines, Cafeyn offers the best product and reading experience in the market and boasts very deep relationships with distribution partners and publishers. We look forward to working with Ari and his talented team to further develop the company and technology platform both in Europe and internationally.
We champion a responsible investment approach focused on creating long-term, sustainable value and are conscious of the responsibilities we have towards all our stakeholders.