• Home
  •  
    Regions
    • Europe
    • UK & Ireland
    • DACH
    • Nordic
    • France
    • Southern Europe
    • Benelux
    • CEE
    • Asia
  •  
    Deals
    • Buyouts
    • Venture
    • Exits
    • Refinancings
    • Build-up
    • Turnaround
    • Secondaries
    • Advanced deals search
  •  
    Funds
    • Buyout
    • Venture
    • Mezzanine
    • Debt
    • Funds-of-funds
    • Secondaries
    • Fundraising pipelines
    • Advanced funds search
  •  
    GPs & LPs
    • GP profiles
    • LP profiles
    • GP news
    • LP news
    • Sponsors search
    • LPs search
  •  
    Secondaries
    • Deals
    • Funds
    • News
    • Analysis
  •  
    People
    • People moves
    • Analysis
    • In Profile
    • Q&A
    • Videos
    • Comment
  •  
    Analysis
    • In Profile
    • Fundraising
    • Q&A
    • Comment
    • Videos
    • Podcast
    • Reports
    • Data Snapshots
  •  
    Unquote Data
    • Deals search
    • Exits search
    • Funds search
    • Sponsors search
    • Advisers search
    • LPs search
    • League tables
    • Reports
  • Sign in
  • Sign in
    • You are currently accessing unquote.com via your Enterprise account.

      If you already have an account please use the link below to sign in.

      If you have any problems with your access or would like to request an individual access account please contact our customer service team.

      Phone: +44 (0)203 741 1137

      Email: Georgina.Lawson@acuris.com

      • Sign in
     
      • Newsletters
      • Account details
      • Contact support
      • Sign out
     
  • Follow us
    • Twitter
    • LinkedIn
  • Free Trial
  • Subscribe
Unquote
Unquote
  • Home
  • Regions
  • Deals
  • Funds
  • GPs & LPs
  • Secondaries
  • People
  • Analysis
  • Unquote Data
  • You are currently accessing unquote.com via your Enterprise account.

    If you already have an account please use the link below to sign in.

    If you have any problems with your access or would like to request an individual access account please contact our customer service team.

    Phone: +44 (0)203 741 1137

    Email: Georgina.Lawson@acuris.com

    • Sign in
 
    • Newsletters
    • Account details
    • Contact support
    • Sign out
 
Unquote
  • Exits

MML sells Optionis to Sovereign-backed Arkarius

  • Kenny Wastell
  • Kenny Wastell
  • @kennywastell
  • 11 January 2017
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Send to  

MML Capital Partners has sold British professional services business Optionis to Sovereign Capital-owned Arkarius.

The deal was funded primarily by debt, a Sovereign Capital spokesperson confirmed, with Arkarius refinancing its existing facility into new packages worth a total of £135m, according to unquote" sister title Debtwire.

MML held a 53% stake in the business as of April 2016, according to publicly available records.

Optionis

  • DEAL:

    Trade sale

  • LOCATION:

    Warrington

  • SECTOR:

    Financial administration

  • FOUNDED:

    2000

  • TURNOVER:

    £300m

  • STAFF:

    350

  • VENDOR:

    MML Capital Partners

  • RETURNS:

    2.6x

The deal represents a 2.6x return for the GP, which was invested in the company via its €250m fifth fund. MML partner Richard Mayers told unquote" the vehicle is now around 50% divested.

Following the deal, the consolidated group will trade under the Optionis brand, with the newly merged group having a client base of around 40,000.

Optionis founder and managing director Derek Kelly will take on the role of CEO at the group, while Arkarius CEO Simon Curry will oversee group operations, with an initial focus on the company's integration plan. Arkarius chairperson Jeremy Newman will continue to chair the new group.

Under MML's tenure, Optionis has undertaken an acquisitive growth strategy, most recently bolting on specialist pub accountant ARC Licensed Trade Consultancy. Other acquisitions include Wheatley Pearce and the accountancy business of Bridgewood Financial Solutions.

MML's Mayer said the group had evolved from an umbrella business, greatly increasing its focus on professional services for SMEs and micro-businesses. The company concentrated on a domestic growth strategy due to regulatory inconsistencies across various international markets.

The investment comes two years after Sovereign acquired accountancy businesses SJD Accountancy and Nixon Williams for £100m, and merged the two companies to create Akrarius.

At the time of publication, unquote" was unable to reach MML for comment.

Debt
Alcentra provided a unitranche debt package to support the deal, which Debtwire reports to be worth £120m. The publication also reports HSBC provided a super senior revolving capital facility of £15m. Sovereign's spokesperson declined to comment on the figures.

Previous funding
Inflexion Private Equity supported the £24m buyout of Optionis (known then as Parasol) in 2006. Eight years later, in January 2014, MML acquired the business from Inflexion in a secondary buyout deal, with the vendor reaping a 3.5x money multiple on the deal.

Company
Founded in 2000 and headquartered in Warrington, Cheshire, Optionis provides accountancy and HR services for freelancers and contractors. It trades under the Parasol and Clearsky brands and, at the time of its most recent bolt-on acquisition, the company had a headcount of 350. Optionis has additional offices in London and Poole.

According to publicly available records, Optionis generated a turnover of £300m in the year ending April 2016, with operating profits before amortisation of goodwill standing at £6.7m. Debtwire reports the consolidated business will generate EBITDA of £25m.

People
Sovereign Capital – Jeremy Morgan (partner).
MML Capital Partners – Richard Mayers (partner).
Optionis – Derek Kelly (CEO).
Arkarius – Jeremy Newman (chairperson); Simon Curry (CEO).

Advisers
Equity – PwC (debt advisory, corporate finance, financial due diligence); Pinsent Masons (legal).
Vendor – Clearwater International, Phil Burns, John Clarke, Mark Lawrence (corporate finance).

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Send to  
  • Topics
  • Exits
  • Portfolio management
  • UK / Ireland
  • Support services
  • United Kingdom
  • Trade sale
  • MML Capital Partners
  • Sovereign Capital

More on Exits

Public sector software
Partners Group to release IMs for Civica sale in mid-September

Sponsor acquired the public software group in July 2017 via the same-year vintage Partners Group Global Value 2017

  • Exits
  • 04 September 2023
Lender taking the keys from a sponsor
Ares Management handed keys to two-thirds of UK sponsor’s portfolio

Lender provided GBP 500m for three of the GP's deals between 2016 and 2019, Debtwire reported

  • Financing
  • 30 August 2023
Luggage and airport services
Actera Group explores strategic options for Celebi Ground Handling

Several investors placed bids for the company in 2022 but mismatch in pricing didn't lead to a deal

  • Exits
  • 30 August 2023
HR software solutions providers
Main Capital’s Assessio to be sold to Pollen Street

Recruitment software company tripled in revenue under Main Capital’s ownership

  • Buyouts
  • 25 August 2023

Latest News

Fund closes in US dollars
  • Funds
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme

Multi-family office has seen strong appetite, with investor base growing since 2016 to more than 90 family offices, Meiping Yap told Unquote

  • 05 September 2023
Clinical trials and biotechnology
  • Buyouts
Permira to take Ergomed private for GBP 703m

Sponsor deploys Permira VIII to ride new wave of take-privates; Blackstone commits GBP 200m in financing for UK-based CRO

  • 04 September 2023
Public sector software
  • Exits
Partners Group to release IMs for Civica sale in mid-September

Sponsor acquired the public software group in July 2017 via the same-year vintage Partners Group Global Value 2017

  • 04 September 2023
EMEA Public to Private M&A
  • Investments
Change of mind: Sponsors take to de-listing their own assets

EQT and Cinven seen as bellweather for funds to reassess options for listed assets trading underwater

  • 04 September 2023
Back to Top
  • About Unquote
  • Advertise
  • Contacts
  • About Acuris
  • Terms of Use
  • Privacy Policy
  • Group Disclaimer
  • Twitter
  • LinkedIn

© Merger Market

© Mergermarket Limited, 10 Queen Street Place, London EC4R 1BE - Company registration number 03879547

Digital publisher of the year 2010 & 2013

Digital publisher of the year 2010 & 2013