Portfolio
Civica
| Sector | Technology, Media & Telecoms |
|---|---|
| Investment type | Buyouts |
| Region | UK |
| Status | Current investment |
Nature of Business
Civica is a market leader in specialist systems and business process services for the public sector, applying software, managed services and outsourcing to help organisations achieve a successful and more cost-efficient way of working. The Group works with more than 2,000 organisations internationally in local government, education, social housing, healthcare and enforcement, as well as other regulated markets such as pensions and legal. With a 25-year history of supplying software and services in the UK, Australia, New Zealand, Singapore and the USA, Civica’s products and services are behind local transactions with 25 million citizens and businesses.
Investment Overview
3i acquired a majority holding in Civica in April 2008 in a public-to-private transaction that valued the business at £218m. The business stood out as the premium operator in its field due to its leadership domestically, its superb platform for international growth and its experienced executive team led by CEO Simon Downing. The combination of 3i’s TMT sector experience and Civica’s diverse mix of clients and products is unlocking a wide range of opportunities – both for product development and acquisition-led growth. Organic growth is being driven by further core software sales from Civica's market leading product portfolio. Growth is further driven by up selling existing customers into the managed service offerings and in niche areas such as an IPR lead BPO proposition. For example Civica recently won a 10 year £35m BPO contract with Luton LA to deliver outsourced ICt services to the council. Civica has been and will continue to grow through gaining greater market share.
We have also supported Civica’s acquisition-led growth and since our investment in April 2008 the company has made a total of 10 bolt-on acquisitions in Australia, New Zealand and the UK. Recent examples include IBS and In4tek and RM Australia which have reinforced our leading revenue and benefit status and widened our health and education offerings. Reflecting the strong financial performance in 2011 we further strengthened Civica’s funding power with new and increased debt and equity funding for future acquisitions.
