Electra Private Equity PLC (“Electra”) announces the sale of its stake in CPA, the leading global provider of intellectual property (IP) management services and software.
Lead investor Intermediate Capital Group agreed the sale of CPA to Cinven yesterday for an undisclosed consideration. The transaction is subject to the approval of a Scheme of Arrangement in Jersey and regulatory clearances, and is expected to close by the end of the first quarter of 2012.
Subject to completion, Electra is expected to receive net proceeds in the region of £30 million, based on today’s exchange rates, which generates a 60% IRR and a return of 2.3x original cost in under two years. This represents an uplift in diluted NAV per share of 32p from the value of Electra’s holding in CPA at 30 September 2011.
CPA was founded in 1969 to manage patent renewals on behalf of firms of patent attorneys. The business has expanded into the broader legal services outsourcing market and CPA has benefitted from the growth in this sector over the last few years as more companies outsource the protection of their intellectual property and related litigation. The company is now the world’s top IP management and software specialist and a leading provider of legal services outsourcing employing 1,500 people to service clients’ needs in over 100 countries.
Rhian Davies, a Partner at Electra Partners, the Manager of Electra Private Equity PLC, commented:
“Electra Partners’ strategy is to back attractive businesses with international market growth opportunities. Whilst investments such as Allflex and Capital Safety Group demonstrate our ability to create value in businesses over the long-term, CPA is a great example of a successful return in a very short time frame”.
John Martin of Electra Partners continued:
“One of the advantages of Electra’s flexible investment mandate is the freedom to invest in any type of deal, be it as lead investor or on a co-investment basis. With CPA, we identified a strong business in a growth sector and were able to co-invest alongside Intermediate Capital Group to support the ongoing success of the business”.
The sale of CPA is Electra’s fourth realisation in as many months following the sale of specialist credit card provider SAV Credit, heating treatment products manufacturer BDR Thermea and fall protection equipment manufacturer Capital Safety. All investments have been sold at significant returns for Electra.
Electra Partners refers to Electra Partners LLP acting on behalf of its client Electra Private Equity PLC (“Electra”).
For further information please contact:
For Rhian Davies / John Martin:
Kate Ruck Keene, M:Communications +44 (0)20 7920 2322
Monique Dumas, Investor Relations Partner, Electra Partners +44 (0)20 7306 3911
Note to editors:
About CPA Global
CPA Global is the world's top intellectual property (IP) management and IP software specialist, and a leading provider of legal services outsourcing (LSO). With offices across Europe, the United States, and Asia Pacific, CPA Global supports many of the world’s best known corporations and law firms with a range of IP and broader legal services, helping them to manage risk, cost and capacity, and realise greater value for their businesses and their IP assets.
CPA Global was founded in 1969 in Jersey, Channel Islands, originally to manage patent renewals on behalf of numerous firms of patent attorneys. Today, the Company employs 1,500 people, serving clients' broader IP management and legal support services needs in over 100 countries.
For more information, please visit: www.cpaglobal.com
About Electra Private Equity PLC
Electra Private Equity PLC is an investment trust listed on the London Stock Exchange since 1976. Electra’s objective is to achieve a rate of return on equity of between 10-15% per annum over the long-term by investing in a portfolio of private equity assets. Over the ten years to 30 September 2011 Electra achieved a diluted net asset value per share increase of 168%, compared to an increase of 13% for the FTSE All-Share Index.
For further information please visit www.electraequity.com.
Electra Partners LLP
Electra Partners is an independent private equity fund manager with over 25 years experience in the mid-market buyout sector. As at 30 September 2011, the firm had funds under management of over £1.3 billion. The firm's flexible investment approach allows it to invest across a broad range of sectors and financial instruments including equity, senior equity, convertibles and mezzanine debt. Concentrating principally on Western Europe, and with the majority of investments expected to be made in the United Kingdom, Electra Partners typically seeks to invest in the region of £40 to £100 million of equity, in deals of up to £300 million enterprise value.
The firm's major client is Electra Private Equity PLC, a private equity investment trust which has been listed on the London Stock Exchange since 1976. The firm also manages the Electra Partners Club 2007 LP, a fund raised in 2008 for the sole purpose of investing alongside Electra in controlled investment situations.
For further information please visit www.electrapartners.com.
Electra Partners LLP is authorised and regulated by the Financial Services Authority.