Corsair exits RGI to CVC

Unquote’s sister publication Mergermarket first reported in July 2021 that Corsair was exploring options for a sale of RGI later that year. At the end of February 2022, Mergermarket reported that exclusivity had been awarded to an undisclosed foreign fund, with local press coverage later revealing this to be CVC.

Mergermarket reported that the company was to be marketed based on EBITDA of EUR 25m and was expected to generate a “strong valuation” due to continuing market consolidation and sponsor appetite for similar assets.

Corsair acquired RGI from Ardian in January 2018. The GP invested via Corsair V Financial Services Capital Partners, which held a final close in February 2020 on USD 1bn in February 2020. The fund invests in European and North American financial services companies with enterprise values of USD 100m-500m, deploying USD 50m-100m per deal.

Under Corsair’s ownership, RGI acquired of Novum and Unimatica in 2019, followed by Flexperto in 2021. According to a statement, the GP also assisted with the expansion of RGI’s product offering and with its transition to a cloud-based platform.

CVC is investing via CVC Capital Partners VIII, which has made 11 investments in Europe to date. The EUR 21.3bn, 2020-vintage fund expects to make 30-40 investments in total, deploying EUR 200m-1bn per deal and generally targeting businesses with enterprise values of EUR 1bn-5bn, according to Unquote Data.

Previous funding
21 Investimenti acquired a 60% stake in RGI, investing alongside the company’s founder, Paolo Benini.

Ardian acquired a 72% stake in RGI in 2014 in a deal that saw 21 Investimenti exit the company. Founder Paolo Benini retained a 20% stake in the company, with the remaining 8% stake retained by the management, according to Unquote Data.

In 2016, RGI acquired French market peer Kapia Solutions, backed by a capital increase via Ardian Expansion III, according to Unquote Data. Benini also took part in the capital increase. Following the transaction, Ardian retained a 67% stake in the business, while Benini owned 18%.

Company
Founded in 1987, RGI provides a modular software offering for insurance functions, covering processes such as policy administration, claims, reporting and sales. Its clients are property and casualty and life insurance businesses, as well as corporates, and it operates in markets including Italy, France, and Germany. RGI is headquartered in Milan and Ivrea in Italy.

At the time of Ardian’s investment in 2014, the company posted revenues of EUR 50m and EBITDA of EUR 15m, with a staff base of 630, according to Unquote Data. It posted revenues of EUR 70m and EBITDA of 18m, with 800 employees, at the time of its acquisition by Corsair. RGI now employs 1,200 staff and posts revenues of more than EUR 100m.

People
CVC Capital Partners – Leif Lindbäck, (partner, head of European TMT); Giorgio De Palma (partner).
RGI Group – Cécile André Leruste (CEO).
Corsair Capital – Raja Hadji-Touma (partner); Edward Wertheim (managing director).

Advisers
Vendor – Arma Partners (corporate finance).
Equity – Oliver Wyman (commercial due diligence); EY (financial due diligence, tax, legal); Latham & Watkins (legal); Schneider Electric (environmental due diligence); Accenture (environmental due diligence).

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