How OVH Finances its Growth Financially

Laurence Delorme, Tax Advisor

Sustained growth, increased financing needs. For eighteen months and the launch of the Spiral project which provides 1.5 billion euros of investment over five years, OVH’s Chief Financial Officer, Nicolas Boyer, is on all fronts.

To take advantage of the explosion of the cloud market and accelerate our growth, we have embarked on a massive international expansion. Previously based mainly in France and Canada, we have deployed a dozen new data centers in Australia, Singapore, Poland, Germany, the United Kingdom and the United States.

As great financier, it was the responsibility of Nicolas Boyer ensure the financial back of such a project.

In consultation with the entire executive committee, the CFO chose to act in two stages. First, by bringing two new investors, KKR and TowerBrook, into the capital. The € 250 million acquisition of this minority stake gave OVH the means to strengthen its equity, while allowing the family of its founder, president and CTO, Octave Klaba, to maintain control. “Beyond our strict financial needs, we were looking for partners with kidneys strong enough to help us grow, what are KKR and TowerBrook,” said Nicolas Boyer.

Remobilize your banking pool

In a second step, the CFO called on a banking pool of nine institutions to set up a confirmed line of credit of 400 million euros. After strengthening its own funds and taking out a private bond placement two years ago, using the banking option allowed the group to secure its financing and not be dependent on a single source. “It was also an opportunity to revamp the commitment of our banking pool with us, says Nicolas Boyer. We operate by cycle. Next time, we will probably call on the bond market. ”

Who says international development, also says increased reporting requirements. “To bring this information back, it is very difficult, in such a short time, to create a financial direction in each new country of implantation,” notes Nicolas Boyer. To avoid this pitfall, OVH has chosen the Mazars network to outsource these new financial clusters. “Little by little, we will consolidate these different locations and, depending on the local complexity, choose to integrate them or not,” concludes the DAF.

Have a question? Contact Laurence Delorme. Comments are always welcome!


Laurence Delorme

Laurence Delorme

Meet Tax Experts At TaxConnections...