Bridgepoint appoints advisers for Qualitest sale

Mergermarket team
13 January 2023

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Bridgepoint has appointed JPMorgan and Jefferies to explore a sale of UK-headquartered software testing company Qualitest, sources familiar with the matter said.

The buyout group is expected to launch a formal process for the AI-driven software testing and quality assurance specialist in 1Q or 2Q depending on market conditions, two of the sources said. With a final decision on timing yet to be made, the sale could still slip into the second half of the year, another source added.

Several large-cap sponsors including KKR and CVC Capital Partners are looking at the business ahead of a sale, one of the sources said. The likes of Carlyle, Eurazeo, Partners Group, Cinven Partners and BC Partners could also be logical buyers for the business, added a sector banker.

The business could fetch a high-teen EBITDA multiple in a sale, depending on market conditions, one of the sources said. Qualitest has annual EBITDA of between USD 80m-USD 100m, as reported.

The company generated revenues of USD 306m in the year ending December 2021, a 63% increase from USD 188m recorded in the same period the year before, company accounts show.

Qualitest was acquired from Marlin Equity Partners by Bridgepoint's EUR 5.7bn (USD 5.6bn) flagship fund BE VI in October 2019 for an estimated deal value of USD 420m, according to Dealogic data.

Founded in 1997, the company has operations in the US, UK, Germany, Romania, Israel, Argentina, Mexico, and Portugal and serves over 250 customers worldwide, according to a company press release.

Representatives for Bridgepoint, JPMorgan, Jefferies, CVC and KKR declined to comment. Qualitest did not respond to requests for comment.