Warburg Pincus buys Accelya from Chequers

Though Warburg Pincus did not disclose the amount it paid for the controlling stake, press reports pus the enterprise value of the deal at €650m.

Chequers is understood to have fully exited the business, having held the company for 10 years. Following the transaction, Warburg Pincus will retain a majority stake in the combined group, while representatives from the management teams will hold the balance.

According to press reports, the GP acquired the business in an auction process in which it saw off Bridgepoint and PAI Partners.

As part of the deal, the GP intends to merge Accelya with its portfolio company Mercator, a Dubai-based travel services provider. The GP acquired a majority stake in the business from the Emirates Group in 2014, which retained a minority stake following the transaction.

Following the merger, the companies aim to provide a broadened services portfolio, including revenue accounting, management and assurance, as well as cargo management, payment services, data analytics and cost management. The combined business expects to generate $200m in revenues.

Previous funding
In October 2007, Chequers acquired a majority stake in Accelya (formerly known as ADP Clearing) as part of the company's MBO from its parent company ADP. As part of the deal, IKB underwrote a senior facility while Indigo Capital provided a mezzanine loan to support the transaction. The acquisition was set on a 35-65% equity-debt ratio, according to unquote” data.

More recently, the French GP was reported to have received a dividend payment as part of a refinancing transaction worth $190m in February 2014.

Company
Founded in 2007 and headquartered in Barcelona, Accelya provides financial and commercial analytics services to airline and travel businesses. The company's proprietary technology aims to support clients to manage costs, risk, revenue leakages and cash flows. The business claims to have 200 airlines among its client-base and employs a staff of 2,000.

According to press reports, the company generated $120m in revenues and $55m EBITDA in 2015.

People
Warburg Pincus – Adarsh Sarma (managing director).
Chequers Capital – Stéphane Mulard (partner).
Accelya – John Johnson (CEO).
Mercator – Cormac Whelan (CEO).

Advisers
Equity – Citi Group (M&A); Freshfields Bruckhaus Deringer (legal).
Vendor – BNP Paribas (M&A); Evercore (corporate finance); Ashurst (legal).

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• Topics
• Buyouts
• Southern Europe
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• Spain
• Warburg Pincus
• Chequers Capital
• Secondary buyout