Sovereign Capital Partners has sold its stake in Netherlands-headquartered Xendo, a healthcare-focused consultancy business, to US-based trade buyer and Linden Capital Partners portfolio company ProPharma Group.
The sale marks the first divestment for 2014-vintage vehicle Sovereign Capital IV and brings to an end a holding period of just two years for the vendor.
Unquote understands the sale yielded a 47% IRR for the vendor.
During Sovereign's brief tenure, Xendo acquired Sofus, enabling it to expand into the Nordic region and extend its range of services. The GP also grew the company's management team with the introduction of chief financial officer Arjen Huijs, chairperson Graham Love and non-executive director Ben Cons, while also investing in operational software.
Sovereign backed the management buyout of Xendo in May 2016, in a deal supported by a unitranche debt package provided by European Capital.
Founded in 1990 and headquartered in Leiden, South Holland, Xendo is a provider of consultancy and project management services to the pharmaceutical, life sciences and healthcare sectors. The business has a headcount of 240, up from 140 at the time of Sovereign's initial investment. It now has operations in the UK, the Netherlands, Germany, Japan and the Nordic region.
Sovereign Capital Partners – Dominic Dalli (partner); Jose Rodriguez (director); Ed Goddard (investment director); Paul Mangan (deal origination).
Xendo – André van de Sande (CEO).
Vendor – Results International, Kunal Kadiwar (corporate finance); Eversheds, James Travis (legal); LGT European Capital, Colin Wright (debt advisory).
Fund, which has already been invested in at least one transaction, has a €1bn target
Pechel, via Pechel IV, and the co-investment team of Omnes back the French IT services firm
Connection Capital provided £6.7m to support the buyout of the business in 2017
Temasek previously led a £7m investment for the technology developer in 2016