Inflexion Private Equity, a mid-market private equity investor, has sold its entire stake in ACIS (Advanced Communications and Information Systems), in a secondary buyout to The Carlyle Group for between £60 million and £65 million (€89 and 97 million; $115 and $125 million), according to a source familiar with the deal.
Inflexion increased ACIS’ employee numbers by 25 percent to 150 staff during the 18-month holding period and doubled the company’s profits. Inflexion said this enabled the company to consider various exit options sooner than originally planned.
Investec Corporate Finance led the transaction, which was part of a competitive dual track disposal. Grant Thornton advised Inflexion on tax while Pricewaterhouse Coopers acted as accountants.
Latham & Watkins gave legal advice to The Carlyle Group and KPMG provided financial services.
Simon Turner, managing partner of Inflexion Private Equity said: “We have been able to help accelerate the company’s development, enabling ACIS to take a leap forward and allowing us to realize a good return on our original investment in a short space of time.”
This is the second full exit from the fund. In July 2004 Inflexion sold its stake in Ster Century Cinemas at an internal rate of return of 251 percent, realising a 3.2 times return on its original £16.5 million investment.
Last month Inflexion backed a £24 million management buyout of Parasol, an employment services company. Inflexion paid £9.4 million for a majority stake. Inflexion plans to close one to two more investments before Christmas.