
HgCapital and VSS exit SHL to CEB for $660m
HgCapital and Veronis Suhler Stevenson have exited psychometric testing company SHL to the NYSE-listed trade player Corporate Executive Board (CEB) for $660m.
The transaction returned 3.1x the original investment, corresponding to an IRR of 26%, to HgCapital.
Since 2006, HgCapital has helped SHL grow revenues by 80% and EBITDA by 200%. The GP strengthened the management team, centralised operations, focused on technology and product development, and improved sales capability.
Previous funding
HgCapital acquired SHL in a £100m take-private from the London Stock Exchange in 2006. The deal was supported by a £52m debt package from CIT, including a £12m mezzanine facility. In 2011, the company merged with PreVisor, thereby including VSS as co-investor in SHL.
Company
Founded in 1977, SHL provides psychometric testing, allowing corporate customers to measure psychological qualities, including intelligence and personality traits, in prospective or current employees. Its client base includes 80% of the FTSE 100, 50% of the Australian Stock Exchange and 40% of the Fortune 500. Headquartered in London, it employs around 850 staff and generated an EBITDA of $56.9m from a $209.8m turnover in 2011.
People
Partner Lisa Stone worked on the deal for HgCapital. Managing director Michael Kessler and managing partner Jeffrey Stevenson worked on the deal for VSS.
Advisers
Vendor – Morgan Stanley (Corporate finance); Weil Gotshal & Manges (Legal); Deloitte (Financial due diligence).
Equity – Allen & Company (Corporate finance); Bank of America Merrill Lynch (Corporate finance); Kirkland & Ellis (Legal).
Latest News
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme
Multi-family office has seen strong appetite, with investor base growing since 2016 to more than 90 family offices, Meiping Yap told Unquote
Permira to take Ergomed private for GBP 703m
Sponsor deploys Permira VIII to ride new wave of take-privates; Blackstone commits GBP 200m in financing for UK-based CRO
Partners Group to release IMs for Civica sale in mid-September
Sponsor acquired the public software group in July 2017 via the same-year vintage Partners Group Global Value 2017
Change of mind: Sponsors take to de-listing their own assets
EQT and Cinven seen as bellweather for funds to reassess options for listed assets trading underwater