Rutland reaps 1.3x on sale of NoteMachine

The company's management will retain a significant stake in the company.

The exit sees the turnaround investor reap an approximately 1.3x multiple on its original investment, completed through Rutland Fund I, and follows the sale of Pulse Home Products earlier this month. Following the divestment of NoteMachine, Advantage Healthcare is the only remaining investment in the vehicle Rutland Fund I.

Corsair was drawn to the deal as it falls in line with its focus on the global financial services industry. The new owner will focus on the expansion of the firm into new markets.

Previous funding
In 2006, Rutland completed the delisting of Scott Tod Plc from AIM through the newco NoteMachine. The offer of 21 pence per share returned £7.4m to shareholders. Rutland invested £11.2m in an all-equity deal through Rutland Fund I, which closed on £210m in 2001.

In 2007, the company acquired the UK operations of ATM operator TRM inc for £45.3m. Rutland invested £11m in Notemachine to support the acquisition with the balance of the funding from a debt package provided by Barclays and Kaupthing Singer & Friedlander. The acquisition brought Rutland's total investment in the firm to £22.2m.

Earlier this year, GE Capital, Barclays and European Capital provided a £63m senior debt refinancing package to Notemachine, leaving the firm's leverage at about 3.7x EBITDA.

Company
Founded in 2006, NoteMachine owns and operates around 7,000 automated teller machines (ATMs) in the UK and a further 500 in Germany.

People
Paul Cartwright and David Wingfield led the deal for Rutland. Lord Davies, vice chairman of Corsair, has joined the board of NoteMachine as non-executive chairman.

Advisers
Equity – Clifford Chance (Legal).
Vendor – KPMG (Financial due diligence); Taylor Wessing (Legal).
Management – Deloitte (Financial due diligence); Taylor Wessing (Legal).

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