Investcorp sells UK-based online payments firm
Manama, August 19, 2013
Bahrain-based Investcorp has agreed to sell a majority stake in British online payments services firm Skrill Group to private equity group CVC Capital Partners for 600 million euros ($800 million).
As part of the deal Investcorp will keep an approximate 25 per cent stake in the company, sources said. It will also retain a seat on Skrill's board, the company said in a statement.
Investcorp initially invested 25 million euros for a controlling stake in Skrill in March 2007, when Skrill generated revenues of 7.8 million euros and EBITDA of 3.7 million euros. It now employs about 700 people and in 2012, generated over 200 million euros in revenues, Investcorp said.
Mohammed Al-Shroogi, president for Gulf Business at Investcorp said: “Skrill has been a high-quality investment for Investcorp. We are proud to have supported the management from the beginning of our partnership and happy to have helped them build a strong presence within the online payment and digital wallet platforms worldwide.”
“As we continue to retain a minority stake in Skrill, we look forward to continuing to partner with the management team as it strives to continue to create value and realize the company’s full growth potential,” he added.
CVC's acquisition of a 75 per cent stake in Skrill will be funded with around 250 million euros of equity as well as debt financing provided by Credit Suisse, RBS and Jefferies.
Investcorp was advised on the transaction by Barclays (M&A) and SJ Berwin.
Founded in 2001, Skrill is available in 200 countries and territories, offering 100 local payment options and 40 currencies, according to Investcorp's website. It expanded through the acquisition of Austrian firm paysafecard.com for around 140 million euros in July 2012. – TradeArabia News Service & Reuters
More Finance & Capital Market Stories
- KFH-Bahrain rebrands priority banking
- Bank Nizwa wins top Islamic bank award
- Qatar labour costs may jump: IMF
- Kuwait Q3 trade surplus hits $23bn
- Dubai trade growth up 7.6pc to $362bn
- Deloitte appoints new managing director
- Al Ramz tops UAE trading in Feb
- IFC in $150m loan deal with Bank Audi
- SME funding focus for Abu Dhabi forum
- Insurance House posts second year of profit
- ETF global assets hit record $2.44 trillion
- Bahrain firms plan IPOs
- Serbia wins $1bn Abu Dhabi loan
- Key equity banker resigns from Saudi Fransi
- DMCC to boost Islamic commodity trade with tie-ups
- IDB, KIA units to invest in Morocco
- First Gulf to set up $1bn sukuk in Malaysia
- Singapore’s UOB Bullion and Futures joins DGCX
- Infrastructure investment ‘key to growth’
- BKIC declares 30pc dividend
- StanChart profit falls 16pc in 2013
- Veteran Saudi banker to head AMF
- Dubai World prepays $284m to creditors
- EFG-Hermes sells Damas stake to Mannai
- Ultra rich number to grow 35pc in Mideast
- Saudi IPO market 'set for big year'
- RAK 'exploring' ceramics unit stake sale
- Bahrain Bourse wins key UK award
- Alba backs Euromoney forum
- URC bond rating upgraded to stable outlook