3i sells Civica to Omers Private Equity

Amy King
08 May 2013

Tweet
Facebook
LinkedIn
Google plus
Send to

3i has sold specialist IT systems and services firm Civica to Omers Private Equity for an enterprise value of ТЃ390m.

The sale generated proceeds of approximately £228m for 3i, representing a 2.1x money multiple on the firm's investment.

The acquisition is the fourth completed by Omers' European private equity team since opening in London in 2009. The GP plans to expand Civica both in the UK and internationally.

As part of the deal, GE Capital acted as bookrunner, lead arranger and agent in a £255m syndicated loan.

3i had been looking to divest the business as part of its debt-cutting strategy. Advent International, Apax Partners, Bain Capital and Cinven were thought to have submitted bids for the firm earlier this year.

Previous funding
3i bought Civica in a £270m deal in 2008, delisting the company from AIM. The deal had an enterprise value of £220m and a total value of £270m, including a £50m commitment to acquisition finance funding.

The buyer injected £100m in equity, while a debt package of £170m was supplied by RBS, Bank of Ireland, National Australian, Lloyds and European Capital. Of the total debt package, £100m was senior debt, £20m was acquisition finance, £15m was revolving facilities and £35m was mezzanine (provided by Lloyds and European Capital).

Company
London-based Civica provides software solutions and IT services to the public sector. The firm combines business and technical consulting, and development and integration of specialist business applications and managed services.

The company was launched as Civica in 2002, but has been operating in the sector since 1986. It supplies more than 2,500 organisations in the UK, Australia, New Zealand, Singapore, Canada and the US.

Under the ownership of 3i, the firm has grown acquisitively, bolting on 10 companies in the UK, Australia and New Zealand.

People
Pete Wilson is a director at 3i. Mark Redman is senior managing director of Omers Private Equity.

Advisers
Equity – Travers Smith, Chris Hale, Jim Renahan (Legal); Rothschild, Stuart Vincent (Corporate finance).
Vendor – PwC, James Fillingham (Financial due diligence); OC&C, David Hossein (Commercial due diligence).