Hg invests in TA-backed Access in £1bn EV deal

Kenny Wastell
10 April 2018

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Hg has invested in The Access Group, a TA Associates-backed business software company, in a deal valuing the business at ТЃ1bn.

Following the transaction, TA will retain joint control of Access, which will look to expand its range of products into new verticals.

A person familiar with the deal told Unquote that the transaction was structured as a newco, with Hg and TA holding equal stakes, and the management team retaining a minority interest.

Since TA invested in the group three years ago, Access has undertaken an acquisitive growth strategy, making 11 bolt-ons. The business also made 12 acquisitions under its previous owner, Lyceum Capital.

It is understood the group will continue to pursue bolt-on opportunities under the joint stewardship of Hg and TA.

According to publicly available documents, the business increased its adjusted EBITDA year-on-year by 21% to £27.9m in the year ending in June 2017, while turnover grew by 18% to £101m. However, Unquote understands the EBITDA figure on which the transaction was based was significantly higher than that reported in the most recent financial results.

The source told Unquote the transaction was conducted via a "focused and accelerated PE-centric" sales process.

Previous funding
Lyceum acquired Access for £50m in March 2011 with capital drawn from Lyceum Capital Partners Fund II.

TA then bought the company (at the time known as Access Technology Group) from Lyceum in January 2015, in a transaction that reportedly valued the business at more than £225m.

Company
Founded in 1991, London-headquartered Access develops business software platforms covering financial management and accounting, human resources, school management, healthcare management, hospitality and supply-chain management.

People
TA Associates – J Morgan Seigler (managing director).
Hg – Jonathan Boyes (partner).
The Access Group – Chris Bayne (CEO).

Advisers
Vendor – Arma Partners (M&A); Travers Smith (legal).
Acquirer – Linklaters (legal).
Company – Arma Partners (M&A).
Management – Harris Williams (corporate finance).