3i makes a 2.1x return on the sale of Civica
3i Group plc (“3i”), and funds managed by 3i, announce they have agreed to sell Civica, an international market leader in specialist IT systems and business process services for the public sector, to OMERS Private Equity for an enterprise value of £390m. The total proceeds to 3i and funds of approximately £228m represent a 2.1x money multiple on their investment of £109m.
3i invested in UK based Civica in 2008, in a public to private transaction. 3i backed the incumbent management team, led by Simon Downing as Chief Executive, to support the team’s growth strategy through both organic and acquisitive growth in the UK and internationally.
Since our investment, Civica has continued its strong track record of organic growth of both revenue and EBITDA, driven by a combination of sustained software sales from Civica''s market-leading product portfolio and the roll-out of cloud-based solutions in all markets. Further growth has come from up-selling services to existing customers including specialist outsourcing, such as an IT-enhanced BPO proposition.
3i has also supported Civica with the completion of 10 acquisitions in the UK, Australia and New Zealand, adding key product and geographical presence to Civica’s existing offering. In the same period, staff numbers across the business have increased from 1,350 to over 2,000, approximately 60% of which are in the UK.
Pete Wilson, 3i Director, commented: “Civica has performed extremely well over the last few years. Led by a strong and highly committed management team, it has continued to innovate and deliver high quality solutions to its customers during a period of unprecedented change in public sector spending. We are very proud to have worked closely with the business and supported it in delivering significant organic and inorganic growth.”
Simon Downing, Chief Executive of Civica said: “The last five years have been a key period in Civica’s development. With 3i as a partner, we have been able to strengthen the business as well as grow our footprint, both in the UK and internationally, through a number of selective acquisitions. 3i has provided valuable support and commitment throughout.”
This transaction follows 3i’s sale of its stakes in Mold-Masters, Giraffe and most recently Hyperion. Proceeds to 3i Group plc from today’s transaction, which is expected to complete later today, are approximately £127m, compared to a value of £68m at 31 March 2012 and £83m at 31 December 2012.
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For further information, contact:
3i Group
Kathryn van der Kroft
Tel: +44 20 7975 3021
Email: kathryn.vanderkroft@3i.com
Notes to editors:
About 3i Group
3i is a leading international investor focused on mid-market private equity, infrastructure and debt management across Europe, Asia and the Americas. For further information, please visit: www.3i.com.
About Civica
Civica (www.civica.co.uk) is a market leader in specialist systems and business process services for organisations across the public sector and around the world. Through experienced people who understand service delivery, the Group applies software, cloud-based services and outsourcing to help customers transform the way they work. Drawing on a unique combination of people, technology and business process expertise, the Group supplies more than 2,500 organisations in the UK, Australia, New Zealand, Singapore, Canada and the USA.
Regulatory information
This transaction involved a recommendation of 3i Investments plc.