OMERS Private Equity (OPE) has agreed to sell Civica, a U.K. provider of public sector software, digital solutions and technology-based outsourcing services, for about $1.72 billion (£1.055 billion). The buyer is Partners Group, a European private equity firm. Launched in 2002, London-based Civica was acquired by OPE from 3i Group in 2013 for £390 million. OPE said it has since supported the company’s organic growth and acquisition of a dozen complementary businesses. OPE, the private equity arm of Canadian pension fund OMERS, said the sale of Civica, its tenth exit globally in the past three years, will generate a multiple of 2.6x its invested capital.
OMERS Private Equity agrees sale of Civica to Partners Group
London, 24 July 2017: OMERS Private Equity, the private equity arm of OMERS, the pension plan for municipal employees in Ontario, announces that it has agreed to sell Civica (the “Company”) to funds managed and/or advised by Partners Group, the global private markets investment manager, for a total consideration of £1,055m, generating a 2.6x money multiple for OMERS.
Civica is a leading provider of business-critical software, digital solutions and technology-based outsourcing services to both public sector organisations and to commercial organisations in highly regulated sectors, in the UK and around the world. It has extensive capabilities and presence across local and central government, social housing, healthcare, education and public safety. The Company employs approximately 3,700 employees, around 75% of which are based in the UK, with a strong focus on its people and culture.
Civica’s software and services support over two million professionals every day, streamlining services provided to 100 million people and businesses and serving 2,000 major customers in 10 countries. Since launch in 2002 Civica has established offices around the world, in the UK and Ireland, Australia, Singapore, India and North America.
Since acquiring Civica in 2013 with management, OMERS Private Equity has worked closely with the company to support its continued growth and development, investing behind key organic initiatives to ensure a strong operating foundation, and M&A, where the Company has acquired and successfully integrated 12 highly complementary businesses during our ownership.
During this period of sustained financial and operational success Civica’s management team has been led by founder and Executive Chairman Simon Downing, together with CEO Wayne Story and CFO Phill Rowland.
Martin le Huray, Co-Head of OMERS Private Equity in Europe, said:
“As a market leader with a highly attractive track record in an industry with considerable long term growth potential and a proven, highly capable and ambitious management team, Civica was a perfect match for OMERS Private Equity, our partnership approach and our substantial, unconstrained capital base.”
“Since 2013 we have supported the Company in its ambitious growth strategy with great results, as the company has expanded both the breadth and quality of its products and services to its customers. Civica moves on from our period of ownership significantly enhanced in scale and capability and well placed to further deliver critical services to its customers around the world. We wish the business, its management and its employees the very best for the future.”
Mark Redman, Global Head of OMERS Private Equity, said:
“The sale of Civica is OMERS Private Equity’s third realisation in Europe and our tenth successful exit globally in the past three years, and further evidence of OMERS Private Equity’s ability to support market leading businesses and their management teams in achieving their potential, to deliver superior returns to the OMERS members.”
Simon Downing, Executive Chairman, Civica said:
“We have enjoyed an extremely positive relationship with OMERS over the last four years. They shared our vision for the company and have fully supported us with their differentiated approach and unconstrained capital. The business has grown significantly over the period and it has been a pleasure working with OMERS and the wider team to deliver our plan. We see significant further potential for the business, and look forward with enthusiasm to the next stage of the Civica’s development working together with Partners Group.”
Wayne Story, Civica chief executive officer, added:
“With the valuable support and commitment of OMERS, Civica has continued our strong track record both financially and operationally, driven by the ongoing successful execution of our strategy. We remain committed to that strategy and, with our highly relevant combination of specialist software, digital solutions and technology-based services, together with investments made in resources and management, the business is in a strong position and we are excited by the future possibilities.”
Goldman Sachs International and Nomura International plc acted as financial advisers to the Company; Weil Gotshal acted as legal counsel; EY as financial, operational and tax diligence advisers.
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About OMERS Private Markets and OMERS Private Equity
OMERS Private Markets (OMERS Private Equity and Borealis Infrastructure) invests globally in private equity and infrastructure assets on behalf of OMERS, the pension plan for municipal employees in Ontario. OMERS
Private Equity is the private equity investment arm of OMERS, the pension plan for municipal employees in Ontario, and has $11.0 billion of capital invested. OMERS Private Equity has a team of 42 investment professionals based in offices in London, New York and Toronto. OMERS Private Equity seeks to use its significant and differentiated capital base to partner with management teams of industry leading businesses across North America and Europe to support their growth strategies. For more information, please visit www.omersprivatemarkets.com.
Partners Group is a global private markets investment management firm with over EUR 57 billion (USD 66 billion) in investment programs under management in private equity, private real estate, private infrastructure and private debt. The firm manages a broad range of customized portfolios for an international clientele of institutional investors. Partners Group is headquartered in Zug, Switzerland and has offices in San Francisco, Denver, Houston, New York, São Paulo, London, Guernsey, Paris, Luxembourg, Milan, Munich, Dubai, Mumbai, Singapore, Manila, Shanghai, Seoul, Tokyo and Sydney. The firm employs over 950 people and is listed on the SIX Swiss Exchange (symbol: PGHN) with a major ownership by its partners and employees.
Civica (www.Civica.com) is a market-leading specialist in business-critical software, digital solutions and technology-based outsourcing services that help teams and organisations around the world to transform the way they work. The Company is a leading partner for customers across national, regional and local government, health & care, education and public safety, together with commercial organisations in highly regulated sectors. With a clear vision to help customers achieve better outcomes through the use of digital technology and automation, underpinned by a strong focus around our people and culture, Civica has a strong track record of growth.
Photo courtesy of Civica