CBPE sells Xceptor to Astorg for 10.8x return

Alessia Argentieri
15 March 2021

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CBPE Capital has sold data automation software developer Xceptor to Astorg for a return of 10.8x the original investment and an IRR of 89%.

The current management team has reinvested in the business alongside Astorg.

CBPE put the company on the market in January 2021, when it hired Arma Partners to run the process. The company attracted several PE bidders, including Corsair, Hg, Nordic Capital, Vitruvian, Montagu and Astorg, according to Unquote sister publication Mergermarket.

Astorg clinched the asset with a bid in the region of £430m, equating to roughly 30x the company's EBITDA of £14m, two sources familiar with the situation told Mergermarket. Astorg's bid was financed in all-equity, the report added.

The sale to Astorg ends a four-year holding period for CBPE, which bought a majority stake in Xceptor from SVG Capital. The acquisition was made with equity drawn down from CBPE Capital Fund IX, a £459m vehicle targeting UK companies with enterprise values in the £25-150m range.

Under CBPE's ownership, Xceptor increased its headcount, with a particular focus on broadening its product development and sales teams, while also expanding its international presence across Europe, North America and Asia.

This is the third exit completed by CBPE Capital Fund IX, following the sales of eye treatment specialist SpaMedica and ABI in 2020. In aggregate, CBPE has generated a gross realised multiple of 6.9x invested capital across these three investments.

Company
Founded in 2003 and headquartered in London, Xceptor provides process automation software for financial institutions. Its products relate to back-office business processes, particularly for trade confirmation, tax reclaim, fund processing and collateral management.

Employing 160 staff across five offices, Xceptor serves a diversified global base of banking, financial services and insurance companies.

The group recorded operating profit of £11.2m from revenues of £27m for the year ending on 31 July 2020.

People
CBPE Capital – Jason Khaksar (partner).
Astorg – François de Mitry (managing partner).
Xceptor – Andrew Kouloumbrides (CEO).

Advisers
Vendor – Arma Partners (corporate finance); Travers Smith (legal).
Company – Liberty Corporate Finance (corporate finance); Mishcon de Reya (legal).