Clairvest Group announced this week that it has completed its sale of KUBRA, a Toronto-based customer communication management company, to Hearst Corp, a New York-based media group. Clairvest first invested in KUBRA in 2006, realizing a return of 13.5x its investment, while KUBRA announced Hearst had acquired an 80 percent share of the company. Financial terms were not disclosed.
Clairvest Completes Sale Of Kubra And Realizes A Return Of 13.5 Times On Its Investment
Toronto, Ontario (September 3, 2014) – Clairvest Group Inc. (TSX: CVG) (“CVG”), together with Clairvest Equity Partners III Limited Partnership (“CEP III”, collectively “Clairvest”), announced today the sale of their common shares of KUBRA Data Transfer Ltd. (“KUBRA”) to Hearst Corporation (“Hearst”).
KUBRA was the first investment made by CEP III, a $300 million capital pool that started investing in 2006. Following the sale of KUBRA, Clairvest realized proceeds equal to 13.5 times invested capital and an internal rate of return (“IRR”) of over 40% over eight years.
Since Clairvest made its investment, KUBRA grew to become one of the leading electronic bill presentment and payment companies in North America. In eight years KUBRA grew EBITDA by over 6 times. KUBRA’s growth was primarily organic, achieved through continued investment in technology and enhanced service offering. KUBRA’s growth was further assisted by two tuck-in acquisitions. Over the past eight years, KUBRA won several industry recognitions being named as one of Deloitte’s 50 Best Managed companies, Deloitte’s Technology Fast 50 and Fast 500 in North America, and E&Y’s Technology Entrepreneur of the Year.
“We appreciated having Clairvest as a partner,” commented Rick Watkin, President & CEO of KUBRA. “They actively supported KUBRA’s investments in growth and have been a great resource to the company. KUBRA leveraged its strength in technology to successfully shift and transform its business model in order to enable performance for Our Clients and to deliver confidence to Our People, while being unwaveringly committed to Our Vision.”
“We are very proud of KUBRA’s growth during our investment period. Rick and his team have done an outstanding job building out a technological platform that made KUBRA a leader in the Customer Interaction Management Industry. Their continued focus on innovation, investment in talent and relentless emphasis on service improvement allowed them to win some of the industry’s most coveted and sizable clients. These accomplishments made KUBRA an attractive strategic acquisition for Hearst with great future prospects,” said Michael Wagman, Managing Director at Clairvest. “KUBRA’s future is very promising and we wish this exceptional group continued success in the years to come in their partnership with Hearst.” added Mr. Wagman.
Financial Technology Partners LP and FTP Securities LLC (together “FT Partners”) acted as exclusive strategic and financial advisors to KUBRA and its Board of Directors in this transaction.
Clairvest Group Inc. is a private equity management firm which invests its own capital, and that of third parties through the Clairvest Equity Partners limited partnerships, in businesses that have the potential to generate superior returns. In addition to providing financing, Clairvest contributes strategic expertise and execution ability to support the growth and development of its investee partners. Clairvest realizes value through investment returns and the eventual disposition of its investments.
Director, Investor Relations and Marketing
Clairvest Group Inc.
Tel: (416) 925-9270
Fax: (416) 925-5753
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