UK-based Montagu Private Equity has sold portfolio company CAP to Solera Holdings, a provider of risk and asset management software and services, for £288 million (€361 million, $451 million), according to a statement from the firm.
A source with knowledge of the transaction indicated that the sale generated a 2x return for Montagu.
Montagu declined to comment on the exit.
CAP, founded in 1979, provides vehicle valuation data and new vehicle information to a range of automotive-related sectors, including motor retail, fleet, finance and insurance.
Solera provides software and services to the automotive and property marketplace, including the property and casualty insurance industry, and has a “73-country global footprint”, according to founder, chairman and CEO Tony Aquila.
“CAP’s solutions are a key piece of our risk and asset management strategy in the UK,” Aquila said.
Since Montagu acquired CAP in 2012, the business has expanded into new market segments providing data information solutions to clients in the automotive sectors. It has enhanced its core products, grown internationally from its UK base, and launched new tools and services for customers, as well as expanding its workforce by more than 75 percent. Revenue has grown by more than 40 percent, according to Montagu.
The firm invested in CAP from Montagu Private Equity IV, a 2010-vintage €2.55 billion vehicle. It is understood that the CAP sale is the second realisation from this portfolio, following the sale of Polish radio and TV broadcast infrastructure operator Emitel to US-based infrastructure firm Alinda Capital Partners last December. Emitel was sold for around $1 billion, netting Montagu a return of more than 2x, PEI reported at the time.
In September Montagu sold its stake in Euromedic International, a pan-European healthcare services provider, in a deal valuing the business at €1 billion. The sale of its stake of around 30 percent to Waypoint Capital netted the firm a return of 2x.
Following the sale of CAP, it is understood that Montagu will have returned €2.3 billion to its investors over the last two years.