August reaps 8x money on Amtivo exit to Charterhouse

Min Ho
05 July 2022

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August Equity has sold Amtivo, a provider of accredited certification to companies across 23 countries, to Charterhouse Capital Partners.

The deal generates a 8x money multiple for August, according to a source close to the situation.

August will reinvest alongside management and Charterhouse for a minority stake in the business, according to a statement.

The UK-focused GP acquired a majority stake in the business in 2019 via August Equity Partners IV, which raised GBP 224m in 2017. The vehicle primarily invests in UK lower-mid cap businesses in technology, business services and healthcare, according to Unquote data.

August created Amtivo in 2018 following its acquisition of the British Assessment Bureau. Under the UK private equity house's ownership, Amtivo executed 12 bolt-on acquisitions, including Certification Europe, Ocean Certification and most recently, QA International Certification.

British Assessment Bureau generated GBP 5m in revenue at the point of acquisition and have grown like-for-like revenues 15% year-on-year, the source said, adding that the company now generates around GBP 40m in revenues.

August mandated Rothschild earlier this year to conduct the sale of Amtivo, marketing the company off GBP 10m EBITDA, as reported by Mergermarket.

Under the new shareholder structure, Amtivo is expected to continue pursuing acquisitions that will help build out its geographical presence in Europe, US and Far East, with an objective of tripling the profitability level of the next three to four years, the source said.

August declined to comment.

Company
Founded in 2017 and headquartered in London, Amtivo provides accredited certification, training and technology-enabled services, specialising in management system certification.

People
Charterhouse Capital – James Cocker (partner).
August Partner – David Lonsdale (partner), Kishan Chotai (director), Celine Henriksen (executive).
Amtivo - Mike Tims (CEO).

Advisors
Vendor – Rothschild & Co (corporate finance), DLA Piper (legal), OC&C (commercial), KPMG (financial and tax), PwC (SPA advisory), Crosslake (tech due diligence).
Management – Liberty Corporate Finance (corporate finance), DLA Piper (legal).