Montagu sells Servelec to PE-backed Access Group

Harriet Matthews
01 September 2021

Tweet
Facebook
LinkedIn
Google plus
Send to

Montagu Private Equity has sold its stake in UK-based healthcare and local authority software developer Servelec to The Access Group, an enterprise software development and consultancy company backed by Hg and TA Associates.

Access Group intends to incorporate Servelec into the integrated care offering of its health and social care software division.

TA Associates acquired Access Group from Lyceum Capital in a GBP 225m deal in January 2015. Hg invested in the business alongside TA in April 2018 in a EUR 1bn buyout. The Access Group has since made a series of bolt-ons to expand its software offering in areas including healthcare and construction.

Montagu acquired Servelec in a take-private deal that valued the company at GBP 223.9m; the takeover offer was issued in November 2017 and approved in January 2018. The offer equated to an entry multiple of around 13x Servelec's GBP 17.6m projected 2017 EBITDA.

The GP invested via Montagu V which held a final close in August 2015 on EUR 2.75bn. Servelec is to be the fund's third full realisation, following Montagu's sale of its stake in Visma in August 2020.

Under Montagu's ownership, Servelec made two bolt-ons (including Elemental Software), and invested in its management team, operating processes and software development, according to a statement.

In addition, the company divested two non-core divisions under Montagu's ownership: Servelec sold systems integration division Servelec Controls to Alcuin Capital Partners in December 2018, followed by the sale of its hardware and instrumentation subsidiary Servelec Technologies to FFL Partners' Laurel Solutions in March 2019.

Company
Founded in 2017 and headquartered in Sheffield, Servelec is a software platform that aims to facilitate data sharing between healthcare, social care, education and youth services organisations. The software is used by 45 NHS trusts and around 150 local authorities.

People
Montagu – Edward Shuckburgh (director).
Servelec – Ian Crichton (CEO).
The Access Group – Steve Sawyer (managing director, health and social care).

Advisers
Vendor – Arma Partners (corporate finance); Freshfields Bruckhaus Deringer (legal); PwC (tax).