Advent International has bought Lloyds TSB Registrars, a subsidiary of UK bank Lloyds for £550 million.
The company is a share registration business and it works in financial services process outsourcing. It also manages the Lloyds employee share plan. Advent are retaining the management team with David Winton as managing director.
The business made £32 million profit for Lloyds and it has around £85 million in assets. It also has over 700 corporate clients and 24 million investor and shareholder accounts.
James Brocklebank, director at Advent International, said: “The business will be run by existing employees. We will be building on the firm as a platform, which may just be increasing the services it offers or dependant on the right deals turning up, a buy and build strategy.”
The deal is subject to regulatory approval and is expected to close in the second half of 2007.
The financial services sector has been the subject of much private equity interest lately. The financial markets have been relishing a potential private equity approach from JC Flowers for fellow financial services firm Friends Provident. JC Flowers was also part of the consortium which bought US student loan provider Sallie Mae for $25 billion. Buyout firms have in the past been wary of financial services deals because of the heavy regulation associated with the sector.
Advent has invested in over 25 financial services companies worldwide and this is their fifth investment in the sector in the last year. Similar investments include UK recruitment firm the Alexander Mann Group, financial PR firm Financial Dynamics and US benefits firm WageWorks.
Debt facilities were jointly arranged and underwritten by Lloyds TSB and Lehman Brothers. Weil, Gotshal & Manges gave legal advice while Credit Suisse provided exclusive financial advice. PWC organised accounting and financial due diligence while Mercer Oliver Wyman provided market and commercial due diligence.