Deal round-up 22/05/02

TA Associates backs UK anti-virus firm; Bridgepoint Capital exits Keenpac; AMJPE exits AVC Media

TA Associates backs UK anti-virus firm

US private equity investor TA Associates has invested £41m in UK anti-virus software manufacturer Sophos. The investment will be used to help grow the firm’s business in the US, the world’s largest market for anti-virus software.

The £41m investment, for which TA will receive a minority stake, will see two senior executives from TA join the board of Sophos, one in the UK and the other in the US.

Sophos reports that it has experienced rapid growth in revenue and profitability and cites a base of well over 10 million users and compound annual growth in revenue of 50 per cent over the last three years. 

Bridgepoint Capital exits Keenpac

Bridgepoint Capital has sold its 50.5 per cent stake in Leicester-based Keenpac Holdings as part of a £20.5m secondary buyout. The buyout will return the majority equity stake to Keenpac management team and offers Bridgepoint Capital what it describes as ‘a profitable exit’, although exit multiples and IRR were not disclosed.

Bridgepoint Capital invested in retail packaging company Keenpac in 1999, arranging a £14m funding package for development capital. Bank of Scotland Integrated Finance provided the £20.5m funding for the buyout through a combination of debt and equity.

AMJPE exits AVC Media

Aberdeen Murray Johnstone Private Equity (AMPJE) has sold its stake in Aberdeen-based audio-visual and corporate communications specialists, AVC Media Enterprises. AMJPE provided just over £200,000 in expansion capital to AVC in 1992.

AMJPE has sold its stake to AVC director, Keith Main, and has provided the firm with an internal rate of return of almost 30 per cent. AVC now employs just over 50 people and reports an average turnover in excess of £5m.