ECI sells Bionic to Omers reaping 4.8x

Following the deal completion, Omers will hold a majority shareholding in Bionic alongside the management team. ECI and the founders of the business will hold a minority shareholding, according to Toby Fitzherbert, investment director at ECI.

Unquote's sister publication Mergermarket reported in August 2021 that Houlihan Lokey had been appointed to advise on a sale process for Bionic. The report also noted that a sale to a sponsor could pave the way to an IPO for Bionic at a later date.

Jonathan Mussellwhite, senior managing director and head of European private equity at Omers, told Unquote that Omers approached ECI with a pre-emptive offer, which was accepted by the GP. ECI initiated the process as a result of two other approaches it had received, and it was understood that Bionic would come to market in Q422, Mussellwhite added.

Bionic is currently an all-equity deal and Omers will look to place debt between signing and completion, said Mussellwhite. Following the addition of debt, Omers’ equity cheque will be within its normal range of EUR 200m - EUR 400m, he said.

Omers plans to harness its evergreen capital and experience with strategic acquisitions across Europe to support Bionic’s development. Bionic will also explore new verticals which present cross-sell opportunities, said Mussellwhite.

Omers Private Equity manages investments globally on behalf of Omers, a Candian benefit pension plan, with CAD 121bn in net assets under management as of 31 December 2021, including approximately CAD 19.6bn in net private equity investment asset exposure, according to the press release.

Now is a core time for deployment for Omers, said Mussellwhite, and the sponsor’s central investment geographies include the UK, France and Benelux. France-based portfolio company Trescal, a calibration services specialist, is likely to come to market in Q422, he added.

Under ECI’s ownership, Bionic (formerly known as Make it Cheaper) deepened its product offering, increased routes to market and invested in digital tools and technology, according to a press release. Bionic completed six acquisitions during ECI’s tenure and also strengthened its offering in the energy segment, which it intends to replicate for other verticals such as insurance and connectivity, Fitzherbert said. The business still has further M&A opportunities that it can pursue, he added.

ECI acquired Bionic in 2017, deploying equity via ECI 10, which held a final close in September 2014 on GBP 500m. The GP has reinvested in Bionic through the same fund, said Fitzherbert. ECI reinvested based on the culture that Bionic fosters and the strength of its management team, he added.

ECI chose to sell the business as it is in line with its typical four- to five-year holding period, said Fitzherbert. Prior to onboarding Omers, ECI held a minority stake alongside Bionic’s founders, said Fitzherbert.

This investment marks the 10th exit for ECI in the last 12 months, delivering an average return of 4.2x, according to the press release. As for Omers, Bionic is the GP’s second deal announced in the last 10 days, following its investment in UK-based Network Plus, a utility and infrastructure services provider.

ECI is currently deploying equity via ECI 11, which held a final close in July 2018 on GBP 700m, according to Unquote data.

Company
Bionic was founded in 2017 and is based in the UK with 581 employees. The purpose of Bionic’s platform is to match SME business owners with energy, insurance, connectivity, telecoms and commercial finance solutions. Bionic’s services include price comparison, switch management and renewals.

Bionic posted GBP 67m revenues with an EBITDA of GBP 13.2m in the year ending March 2022, according to Fitzherbert and Mussellwhite. However, the current EBITDA and revenue figures are ahead of this, said Mussellwhite.

People
Omers Private Equity – Jonathan Mussellwhite (senior managing director; head of European Private Equity), James Frankish (managing director, Private Equity Europe).
ECI Partners – Toby Fitzherbert (investment director).
Bionic - Paul Galligan (CEO).

Advisors
Equity (Omers Private Equity) – DC Advisory (corporate finance); Weil, Gotshal & Manges (legal).
Vendor (ECI Partners) – Houlihan Lokey (M&A); EY (financial due diligence); Addleshaw Goddard (legal);
PwC (commercial due diligence); WA Communications (political & regulatory due diligence).

 

[Editor's Note: Subsequent to publication, the tenth and thirteenth paragraphs have been amended to correct the currency denomination to GBP.]

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