Travers Smith has advised Silicon Valley Bank on multiple senior annual recurring revenue (ARR) loans provided in connection with Battery Ventures' (Battery) recent investments in German technology companies, including the acquisitions of Proemion, Vimcar and Avrios.
Battery is a global, technology-focused investment firm with offices in the U.S., Europe and Israel that regularly makes early, growth and buyout investments in the technology sector.
ARR financing has gained popularity in recent years as M&A activity in the technology sector continues to draw increased market attention and private equity sponsors looking to part-debt finance high growth software or similar businesses. Typically, these businesses have not yet reached the stage at which they have achieved positive EBITDA (or if they have, the EBITDA is insufficient to support a leveraged based facility) but can demonstrate predictable and identifiable recurring revenue streams from customer contracts or subscription-based services they provide.
The Travers Smith team was led by Head of Leveraged Finance Matthew Ayre with support from Senior Associate Jason Larkins and Associates Alastair Lowson, Fiona Cantlay and Reece Morgan.
Matthew Ayre and Jason Larkins have previously covered the key features of recurring revenue transactions in the UK and European markets in an article for the Journal of International Banking & Financial Law, first published in its July/August 2022 edition.
