Funds advised by Apax to acquire Herjavec Group
On 11 February 2021, the Apax X Fund (“Apax X”), in which AGA is a limited partner, announced that it has entered into a definitive agreement to acquire a majority stake of Herjavec Group (HG), an award-winning global Managed Security Services Provider (MSSP) and cyber operations leader. The transaction is expected to close in the second quarter of 2021, subject to customary closing conditions.
On a look through basis, AGA is expected to invest approximately €5.4m in the company.
Note that these figures relate to AGA’s look through position of Apax X’s overall investment in HG and are stated before taking into account any closing adjustments and translated based on the latest exchange rates available where applicable1.
Founded in 2003, Herjavec Group has been recognised as one of the world’s most innovative cybersecurity companies with the sole mission of protecting enterprises globally from evolving cyber threats. Earning accolades from industry analysts including Gartner, Forrester, IDC and MSSP Alert, Herjavec Group has developed a reputation globally for attracting top security talent, and continuously advancing its cyber services which include Cybersecurity Advisory Services, Architecture & Implementation of best of breed technologies, Identity & Access Management, 24/7 Managed Security Services, Threat Management and Incident Response.
Having followed the company’s progress to date, Apax X saw the opportunity to back a well-regarded player in the cybersecurity services space with solid potential for both organic and inorganic growth. The Apax Funds, in partnership with HG’s management team, will look to build on the company’s impressive growth rate by accelerating international expansion efforts, augmenting HG’s talent bench with additional threat & identity resources, and further advancing the HG Identity and HG SOAR proprietary platforms. The Apax Tech team have a deep understanding of the cyber security market through the Apax Funds’ prior investments in Sophos, a world-leader in the space and Coalfire, a cybersecurity advisory business which was acquired by the Apax Funds in 2019.
AGA, whose shares are listed on the London Stock Exchange, provides investors with access to a diversified portfolio of private equity funds advised by Apax Partners as well as a focused portfolio of debt and equity investments (“Derived Investments”). In July 2019, AGA made a commitment of c.$450m2 to Apax X.
For more information about the transaction, please visit: https://www.apax.com/news/press-releases/
Contact details
Investor Relations – AGA
Katarina Sallerfors
T: +44 207 872 6526
E: Katarina.sallerfors@apax.com
Footnotes
- Based on Bloomberg closing rate of EUR/USD FX rate on 9 February 2021 of 1.2119
- AGA’s commitment in Apax X of c$450m represents a commitment of $225m in the USD tranche and €199.8m in the euro tranche
Notes
- Note that references in this announcement to Apax Global Alpha Limited have been abbreviated to “AGA” or “the Company”. References to Apax Partners LLP have been abbreviated to “Apax Partners” or “the Investment Adviser”
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- The information presented herein is not an offer for sale within the United States of any equity shares or other securities of Apax Global Alpha Limited (“AGA”). AGA has not been and will not be registered under the US Investment Company Act of 1940, as amended (the “Investment Company Act”). In addition, AGA’s shares (the “Shares”) have not been and will not be registered under the Securities Act or any other applicable law of the United States. Consequently, the Shares may not be offered or sold or otherwise transferred within the United States, or to, or for the account or benefit of, US Persons, except pursuant to an exemption from the registration requirements of the Securities Act and under circumstances which will not require AGA to register under the Investment Company Act. No public offering of the Shares is being made in the United States
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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.
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 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 more than $60 billion. The Apax Funds 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.