Apax VIII announces the sale of Engineering Group
The Apax VIII Fund has announced that it has entered into a definitive agreement to sell its stake in Engineering Group.
Having acquired the business in 2016 alongside NB Renaissance (“NB”) in a take-private transaction, Apax and NB have worked closely with the management team of Engineering to deliver strong organic growth and execute an accretive M&A strategy. Over the course of the last four years, both revenue and EBITDA grew by 11% CAGR, the number of employees increased by c.3,000, and the company completed 19 acquisitions.
AGA, whose shares are listed on the London Stock Exchange, provides investors with access to the investment expertise of Apax Partners through its investments in a diversified portfolio of private equity funds advised by Apax Partners as well as derived investments in debt and equity. In 2012, AGA’s predecessor vehicle made a commitment of c.€342m to Apax VIII.
Funds advised by Apax Partners and NB Renaissance Partners sell their stake in Engineering Group
Rome — Feb. 5, 2020 – Funds advised by Apax Partners (the “Apax Funds”) and NB Renaissance Partners (“NBRP”) today announced that they have agreed to sell their stake in Engineering Group, a leading IT services provider, to a consortium of Bain Capital Private Equity and different funds advised by NBRP.
Headquartered in Rome, Engineering is a leading IT services provider focused on digital transformation with more than 11,000 professionals in 65 locations across the world. The company designs, develops and manages innovative IT solutions for business areas where digitalisation is having the biggest impact.
In 2016 the Apax Funds alongside NBRP, the founder Michele Cinaglia and key senior managers acquired Engineering in a take private transaction which saw the business delist from the Milan Stock Exchange. Since then, Apax and NBRP have worked closely with the management team to deliver strong organic growth and execute an accretive M&A strategy. During the Apax Funds and NBRP’s four-year tenure, both revenue and EBITDA grew by +11% CAGR, reaching €1.3bn and €160m respectively, and the number of employees increased by c.3,000, reaching c.11,000. Over this period, the company completed 19 acquisitions both in Italy and abroad, acting as a consolidation platform in a fragmented market, with a track record of successful integration and expansion of its portfolio of proprietary solutions.
Gabriele Cipparrone, a Partner at Apax Partners, said: “Engineering has a leading position in the Italian IT Services market. Four years ago, we saw the opportunity to leverage our significant expertise in IT Services to help Engineering accelerate growth. The company has delivered on its potential through a focus on organic and acquisitive growth. We would like to thank the CEO Paolo Pandozy and his team for the strong partnership and all they have achieved. We wish them all the best in the future.”
Paolo Pandozy, CEO of Engineering Group, said: “We would like to thank Apax Partners and NBRP for their insights and support over the years. Together, we have accelerated Engineering’s growth through investments in R&D and in innovation, as well as strategic acquisitions, which strengthened our leadership position in the Italian IT Services market.”
Michele Cinaglia, Founder of Engineering, said: “I am proud of what Engineering has achieved during the Apax Funds and NBRP’s ownership. I would like to thank them for their guidance and expertise over the last four years. We look forward to our continued success with NBRP and welcome Bain Capital Private Equity.”
The transaction remains subject to regulatory approvals.
The Apax Funds and NBRP’s selling funds were advised by Rothschild & Co (financial adviser), Simpson Thacher & Bartlett and BonelliErede (legal advisers) and PwC (tax adviser).
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About Apax Global Alpha Limited
AGA is a Guernsey registered closed-ended collective investment scheme incorporated as a non-cellular company that listed on the London Stock Exchange on 15 June 2015. It is regulated by the Guernsey Financial Services Commission.
AGA’s objective is to provide shareholders with capital appreciation from its investment portfolio and regular dividends. The Company is targeting an annualised Total Return, across economic cycles, of 12-15% (net of fees and expenses) including a dividend yield of 5% of Net Asset Value.
The investment policy of the Company is to make Private Equity investments in Apax Funds, and Derived Investments which are investments in equities and debt derived from the insights gained via Apax Partners’ Private Equity activities. The Company’s portfolio is expected to be allocated in approximately equal proportions between Private Equity and Derived Investments, although the investment mix will fluctuate over time due to market conditions, investment opportunities, cash flow requirements, the dividend policy and other factors. Further information regarding the Company and its publications are available on the Company’s website at www.apaxglobalalpha.com.
About Apax Partners LLP
Apax Partners is a leading global private equity advisory firm. Over its more than 40-year history, Apax Partners has raised and advised funds with aggregate commitments of c.€40 billion. Funds advised by Apax Partners invest in companies across four global sectors of Tech & Telco, Services, Healthcare and Consumer. These funds provide long_term equity financing to build and strengthen world_class companies. For further information about Apax Partners, please visit www.apax.com.
Apax Partners is authorised and regulated by the Financial Conduct Authority in the UK.