Inflexion reinvests in Apax-backed Alcumus

Alcumus’ management team will also continue to hold a majority stake in the business.

Inflexion will continue supporting the company’s growth plans. The sponsor reinvested in the business as it has a strong market position, a good management team, and international growth capabilities, according to a press release.

The sponsor reinvested in Alcumus via Inflexion Partnership Capital Fund II, which held a final close on GBP 1bn in May 2018 and targets minority investments. The fund provides equity cheques in the GBP 10m - GBP 300m range taking a generalist approach like its predecessor vehicle, according to Unquote Data.

Inflexion had previously held Alcumus for more than six years, having acquired the business in a GBP 92m SBO from Sovereign Capital in October 2015.

Inflexion hired Harris Williams last year to assist with the sale of Alcumus, Unquote sister publication Mergermarket reported in December 2021. The sale process drew interest from prospective buyers including KKR, Providence Equity, and Hg-backed Citation Group, Apax and Cinven, with Apax ultimately winning the process, as reported by Megermarket.

The report noted that, at the time, Alcumus' EBITDA was at around GBP 34m for FY22; however, sources told Mergermarket that the current figure was closer to GBP 30m, and research and development spend was likely to reduce this to GBP 25m in future. The report went on to add that a valuation of 15x-20x EBITDA was expected.

Inflexion exited Alcumus in February 2022 to Apax scoring a return of 5.9x money. The exit valued the business at GBP 600m, as reported.

Apax Partners invested in Alcumus via Apax X, which held a final close in January 2021 on USD 11bn. The fund focuses on the technology, telecommunications, services, healthcare and consumer sectors, according to Unquote Data.

Company
Alcumus was founded in 2009 and is headquartered in Cardiff. The company is a technology-enabled risk and compliance management services provider. The services it offers include ESG, supply chain compliance, health and safety accreditation, and certification management.

According to public accounts, Alcumus reported GBP 19.7m EBITDA in the year ending December 2020, versus GBP 19.4m EBITDA in the previous year. The company’s turnover was GBP 54.7m in 2020, versus GBP 46.2m in 2019. 

People
Alcumus - Alyn Franklin (CEO).
Inflexion – Simon Turner (managing partner), Mark Williams (partner), Nick Rosenberg (investment director).

Advisers
Equity – Eversheds Sutherland (legal).

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• Topics
• Expansion
• UK / Ireland
• Support services
• Inflexion Private Equity
• Apax Partners
• United Kingdom