Take-privates: Private equity firms scan the market

The end of 2009 saw numerous companies purchased from UK stock exchanges, with four take-private deals in November and December, while this year has already seen a further five delistings in the UK and Ireland, with a total value of more than £1bn.

By comparison, just two buyouts were sourced from public markets in the first quarter of 2009, despite speculation of a slew of take-private deals.

Public markets bottomed out in March 2009, as stock exchanges were in the grip of the financial crisis. Many thought this would be a major opportunity for private equity funds to pick up companies for low prices.

While this prophecy failed to come true, public-to-privates are once again becoming a major source of dealflow for the industry, particularly in the UK.

Among this year's take-privates is the £423m acquisition of Care UK by Bridgepoint while, this month, Vitruvian Partners delisted Inspired Gaming for £135m. The largest public-to-privates this year is the $1.1bn buyout of Dublin-based SkillSoft by Advent International, Bain Capital and Berkshire Partners.

However, with the single exception of SkillSoft, all take-privates since October last year have been in the UK.

While the UK has hardly been untouched by the European sovereign debt crisis, its detachment from the euro currency may make it a more attractive market for buyouts at present.

Market volatility may be standing in the way of successful IPOs at the moment. But with a long-term investment strategy, private equity buyers may find institutional investors more willing to sell their assets than back new listings in such unpredictable times.

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• Topics
• Buyouts
• UK / Ireland
• Investments
• Advent International
• Bridgepoint
• Take Private