HgCapital Sells Orbiscom to Mastercard

HgCapital has sold Orbiscom, an Irish provider of B2C, B2B and P2P payment solutions to the global payments industry, to Mastercard for approximately $100 million. HgCapital had originally invested around $17.5 million into Orbiscom back in 2001, at a post-money valuation of approximately $145 million.

PRESS RELEASE

HgCapital, the European sector-focused private equity investor, has today completed its current round of exits with the sale of Orbiscom for approximately $100m to MasterCard.

Orbiscom is the leading provider of enhanced B2C, B2B and P2P payment solutions to the global payments industry, primarily providing solutions based on its patented Controlled Payment Number™ technology.

This is HgCapital’s 30th exit since June 2005. Realisations since June 2005 have delivered proceeds of approximately £2 billion at an average multiple of 2.7 times the cost of the original investments.

HgCapital has successfully continued to realise investments since the start of the credit crisis in June 2007, with 16 realisations achieved over that period. These sales have realised £1.2 billion, again at an average multiple of 2.7 times original cost.

HgCapital invested in Orbiscom in 2001 and has worked with the company’s management, led by Garry Lyons, to develop its capabilities in the electronic payment market. HgCapital welcomes MasterCard as the ideal owner for the business given its pre-eminence in the payment sector and innovative culture.

Ian Armitage, Chairman of HgCapital, said:

“This transaction brings to an end a round of successful realisations for HgCapital in recent months despite the challenging market conditions.

“Orbiscom was one of a number of technology investments we made after the collapse of the technology boom in 2001 and 2002, which have proved extremely successful overall, thanks to our sector specialisation and the quality of management we have backed. Garry Lyons, the CEO of Orbiscom, has done an outstanding job in turning potential into reality.

“Looking ahead, we appear to be entering a buyers’ market for corporate assets once more, with valuations at a 20-year low. High quality businesses will require fresh investment and supportive investors and this provides ample opportunities for private equity firms such as HgCapital which have both available capital and deep industry experience.”