Kleinwort Capital Limited ('KCL') has today announced the sale of one its portfolio companies, Vivista Holdings Limited ('Vivista'), to SunGard Data Systems Inc ('SunGard'). This transaction, initially worth £104.5 million, generates cash proceeds of 8.1 times the initial investment and an IRR of 254% per annum. The final consideration could increase the transaction proceeds by up to a further £5.5 million.
KCL led the investment by Kleinwort Capital Partners IV ('KCP IV') in Vivista, a new company formed to acquire Securicor Information Systems in a £20.5 million management buy-out in May 2003.
Vivista is a leading provider of Information and Communications Technology and Business Support Services to the public sector, particularly to the local government and public safety markets. It has long term contracts to roll out and support new software to the English and Welsh police forces in order to modernise the Custody and Case Preparation processes. These systems are a key platform for the Government's 'joined up Criminal Justice System' initiative.
The annualised revenue has grown by over 60% since the MBO to nearly £90 million and profits have increased five fold, including a 33% annual increase since February 2004, as Vivista has increased its scale to meet the demanding Government targets.
Richard Green, managing director of KCL said:
"This has been an outstanding investment for us. We were originally approached by the MBO team because of our expertise in the technology sector and our focus on helping management teams. The management team has done a tremendous job to deliver on the demanding timescales and requirements of Vivista's clients.
Given the excellent growth of Vivista over this time period, KCL was approached by a number of third parties and SunGard was selected because it had the best strategic and management fit with Vivista."
The shareholders of Vivista were advised by the TMT Corporate Finance Team at Deloitte and Macfarlanes solicitors.