3i looking to divest Labco and Civica

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3i has initiated much anticipated exit processes for Labco and Civica, two acquisitions made in 2008, according to reports.

The investor reportedly hired Rothschild to handle the sale process for French medical diagnostics company Labco and British business software provider Civica.

The sale of Labco – in which 3i holds a 42% stake together with an investor consortium including TCR Capital, Natixis Investment Partners, Omnes Capital and CIC Finance – is expected to yield up to €1bn. It is believed to have attracted interest from private equity firms EQT, Bain Capital and TowerBrook Capital Partners.

The GP has invested €130m in Labco since 2008 with an additional €15m provided by the consortium. 3i is understood to have a 'drag along clause' in place, which can force other shareholders to sell.

3i bought Civica in a take-private valued at £270m, including acquisition finance funding. The company provides software solutions and IT services to public bodies. Its latest reported turnover was £182.7m.