breakeven (1)

Providence expects to make slight profit with SRA

Providence Equity Partners is breaking even on its investment in SRA International in the near term.  Down the road, a stake in SRA, which is merging with CSC’s government unit, is expected to lead to further profitability.


SRA International to merge with CSC government services unit

CSC said Monday that it has agreed to combine its government services unit with SRA International. Fairfax, Virginia-based SRA is owned by Providence Equity Partners and SRA’s founder, Dr. Ernst Volgenau, as well as members of its management team. The combined company will be a IT services provider serving the U.S. government sector, with combined FY15 revenues of about $5.5 billion and nearly 19,000 employees. SRA shareholders, including Providence, Volgenau and members of SRA management, will own 15.32 percent of the combined company and receive $390 million in cash. MUFG, through The Bank of Tokyo-Mitsubishi UFJ, Ltd., and RBC Capital Markets are providing debt financing.


Providence to sell IRONMAN after seven-year hold

Chinese conglomerate Dalian Wanda Group has agreed to acquire endurance race event brand IRONMAN from Providence Equity Partners for an equity value of about $650 million. Wanda Group will assume IRONMAN’s existing debt. Providence held the business for seven years.


FIS to buy SunGard in $9.1 bln deal

Fidelity National Information Services Inc (FIS) said Wednesday that it has agreed to buy SunGard in a deal valued at $9.1 billion, including the assumption of debt. Wayne, Pennsylvania-based SunGard is a financial software company with $2.8 billion in annual revenue. Seven private equity firms – Silver Lake, TPG, Bain Capital, KKR, Blackstone Group, Providence Equity Partners and Goldman Sachs’ private equity unit – acquired SunGard in 2005 in a $11.3 billion deal. BofA Merrill Lynch and Centerview Partners LLC acted as financial advisors to FIS. Goldman Sachs & Co., J.P. Morgan Securities LLC, Barclays, Deutsche Bank Securities Inc. and Credit Suisse acted as financial advisors to SunGard.


Benefit Street Partners to acquire TICC’s investment adviser

TICC Capital Corp has agreed to sell its investment adviser TICC Management LLC to Benefit Street Partners LLC, the credit investment arm of Providence Equity Partners. No financial terms were disclosed. UBS Investment Bank provided financial advice to TICC Management on the transaction while Houlihan Lokey did likewise for BSP.


Providence, WPP offer $576.8 mln for Chime Communications

Providence Equity Partners and WPP have agreed to acquire Chime Communications plc for approximately £374 million (US$576.8 mln) in cash. WPP already owns 20.03 percent in Chime and reportedLy plans to keep it stake at that amount, making Providence the majority owner. London-based Chime is a communication and sports marketing group.


Providence’s first growth equity fund raises $315 mln

Providence Equity Partners LLC said Monday it closed its first growth equity fund with $315 million in commitments. Providence Strategic Growth Capital L.P. was oversubscribed, exceeded its target of $250 million, and hit its hard cap. PSG will seek investments in lower middle market technology-enabled service companies primarily in North America.


Providence Equity to sell vRad to Mednax for $500 mln

Mednax Inc. said Tuesday it agreed to buy Virtual Radiologic Corp. (vRad) in a deal valued at $500 million. The seller was Providence Equity Partners. Eden Prairie, Minnesota-basd vRad is radiology physician services and telemedicine company. vRad’s current management team will remain with the company as part of Mednax. Credit Suisse provided financial advice to vRad while Kirkland & Ellis LLP was their law firm. McDermott, Will & Emery acted as legal advisor to Mednax.

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