LONDON May 3 Banks are readying around £450m of
debt financing to back a sale of IT and outsourcing firm Civica
as a sale process gets set to kick off shortly, banking sources
said on Wednesday.
OMERS Private Equity acquired Civica from 3i in 2013 for
£390m, backed with £255m of leveraged loans, according to
Thomson Reuters LPC data.
It has now decided to sell the company, hiring Goldman Sachs
on the process, which is due to attract a number of interested
buyers, the sources said.
OMERS declined to comment.
Some £450m of debt financing equates to around 6.5 times
Civica’s approximate £60m Ebitda, the sources said.
Civica is the latest sale set to kick off as the number of
M&A situations in the market grows.
Cash rich lenders will be gunning for buyout firms to win
the auction processes, in a bid to put money to work.
Civica provides a wide range of specialised software systems
and technology-based outsourcing for clients in sectors
including the government and national security, housing,
healthcare, education and regulated markets such as the police,
local councils and law firms.
(Editing by Christopher Mangham)