Motive partners, a private equity firm focused on tech-enabled financial services, has sold Ireland-based fintech company Global Shares to JP Morgan generating around 10x return on invested capital.
A source close to the company told Unquote, the original growth equity investment was made out of Motive Capital Fund I in 2018. The GP invested USD 25m for around 40% of the company, which had an EV of USD 60m, added the source. The deal with JP Morgan values the company at USD 750m EV, said the source.
Mergermarket reported earlier this month that the equity compensation software solutions was exploring a sale via BofA Securities. The article noted the company generates an annual EBITDA of around EUR 30m. Global Shares also considered an IPO for 2024 with a targeted EUR 1bn valuation, according to reports in 2020.
According to a press release, Global Shares has grown to approximately USD 200bn in AUM. Under Motive’s ownership, the company’s revenue increased by 60% versus the year before, as stated in the company’s press release. Motive also executed a value creation plan which included the appointment of Motive Create technologist, Christophe Bouhon, as CIO; the launching new products; gaining new clients in other geographies; and operational improvements.
In a press release, the CEO of Global Shares, Tim Houstoun, said working with JP Morgan will enable the company to expand its international reach in North America and offer greater scope to clients across EMEA and Asia. Moreover, the aim is to further simplify employee ownership and provide JP Morgan’s clients and employees with incentivization capabilities. Mary Callahan Erdoes, CEO of JP Morgan asset & wealth management, will lead the team while continuing to partner with Houstoun and the Global Shares management team. Callahan said in a press release that Global Shares offers complementary services across the entire JP Morgan franchise in terms of managing employee wealth.
According to a press release, in due course JP Morgan will integrate Global Shares into its asset & wealth management segment however the company will remain headquartered in Ireland.
Motive Capital Fund I held a final close on USD 473m in November 2019. The vehicle invests in North American- and European-based technology companies in the financial services industry, according to Unquote Data.
Ireland’s sovereign development fund, Ireland Strategic Investment Fund, teamed up with Motive to support Global Shares with other LP’s, according to a press release.
Global Shares was founded in 2005 and is headquartered in Clonakilty, Ireland. The company provides software and services for employee equity share plans through its cloud-based platform across several jurisdictions. It has a team of 600 employees across 17 locations including Europe, the Middle East, Africa, Asia, and North America.
Global Shares - Tim Houstoun (CEO).
JP Morgan - Mary Callahan Erdoes (CEO of asset & wealth management).
Motive Partners - Andy Stewart, Sam Tidswell-Norrish (partner).
Vendor - BofA Securities (financial advisor); Proskauer Rose, Richard Bull (legal); Arthur Cox (legal); EY, Robert Hussey (financial due diligence).
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