CVC acquires Skrill in €600m SBO

Karin Wasteson
19 August 2013

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CVC Capital Partners has acquired a majority stake in global payments provider Skrill from Investcorp for тЌ600m, which reaped an 8x return on its investment.

CVC acquired the controlling stake in Skrill from a consortium of investors led by Investcorp, who will retain a substantial minority stake in the company as well as a position on its board.

Crédit Suisse, Jefferies International and Royal Bank of Scotland provided fully committed senior debt financing. The completion of the transaction is subject to customary competition clearances and regulatory approvals.

Investcorp initially acquired Skrill for €25m in March 2007. At the time of Investcorp's initial investment Skrill generated revenues of €7.8m and EBITDA of €3.7m.

Company
Founded in 2001, Skrill is a UK provider of online alternative payment solutions serving the online gaming, gambling, digital media and e-commerce industries.

Regulated by the UK Financial Conduct Authority, the company has more than 35 million account holders and 150,000 merchants using its platform.

Skrill posted a turnover in excess of €200m and an EBITDA of €50m for 2012, and employs around 700 people.

People
Peter Rutland is a senior managing director at CVC Capital Partners. Hazem Ben-Gacem is head of Investcorp's European corporate investment team. Siegfried Heimgaertner is president and CEO of Skrill.

Advisers
Equity – Jefferies International (M&A), Clifford Chance (Legal), PwC (Financial due diligence).
Vendor – Barclays (M&A); SJ Berwin (Legal).
Company – Travers Smith (Legal), PwC (Financial due diligence).