(Bloomberg) -- Private credit funds and banks are in talks to provide as much as €1 billion ($1.1 billion) to fund a potential buyout of French cybersecurity specialist Exclusive Networks SA, people with knowledge of the matter said.
An investor group backed by Clayton Dubilier & Rice and Permira made a non-binding offer this month to take Exclusive Networks private at a value of about €2.2 billion.
As private credit has rapidly grown into a $1.7 trillion industry, the market has become increasingly able to compete to fund large buyouts. Direct lenders successfully financed multibillion-dollar deals for companies such as Adevinta ASA, and they’re also competing to provide as much as £1.75 billion to back a potential acquisition of investment platform Hargreaves Lansdown.
When competing to fund take-private deals, banks can usually offer cheaper financing for the buyout firms. Private lenders, meanwhile, tout the speed and certainty of execution.
The bidders for Exclusive Networks proposed a price of €24 a share, the company said in a July 9 statement. Debtwire previously reported on potential financing options.
Spokespeople for CD&R and Permira declined to comment, while Exclusive Networks didn’t immediately respond to a request for comment.
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