Hg sells Radius to Baring's Vistra

Kenny Wastell
27 April 2018

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Hg has sold its stake in US-headquartered Radius, a provider of advisory services to businesses looking to expand into international markets, to Baring Private Equity Asia portfolio company Vistra.

The deal comes five years after the GP invested in the company by acquiring UK-based Nair & Co. Radius was created in 2014 when Hg acquired US business High Street Partners (HSP) from Baird Capital and Sigma Partners, which it then merged with Nair.

Under the GP's tenure, the consolidated group fleshed out its management team, invested in proprietary technology and expanded its sales operations. It also acquired San Francisco-based Montage Services in June 2016.

Hg's listed co-investor HgCapital Trust, which contributed £20m in equity in the original Nair deal alongside other third party funds, received £18.8m from the trade sale, according to a statement.

Previous funding
Hg acquired Nair in August 2013 with capital drawn from HgCapital 6. The GP then provided further financing to support the company's merger with HSP in April 2014, with Silicon Valley Bank and Lloyds providing a debt package to support the deal.

Company
Headquartered in Boston, Radius provides advisory services to companies looking to expand into international markets. It helps set up international entities and integrate legal, accounting, payroll, tax and human resource structures. The company has 500 clients across 80 countries, according to a statement, and a headcount of 880.

Radius has additional operations across other US cities, the UK, India, Singapore, China, Brazil and the Netherlands.

People
Hg – Nick Luckock (partner).
Radius – Stephen Chipman (CEO)
Vistra – Martin Crawford (CEO).

Advisers
Vendor – Jefferies International (corporate finance); Skadden Arps Slate Meagher & Flom (legal).