Switzerland-headquartered investment firm Partners Group is set to acquire a majority stake in business process outsourcing company SPi Global from CVC Capital Partners in a transaction valuing the company at $330 million, according to a company statement.
CVC had invested around $300 million for a 80 percent stake in SPi Global in April 2013 through its 2008-vintage, $4.1 billion CVC Capital Partners Asia III, in one of the largest buyouts in the Philippines.
When completed, the transaction would mark a full exit for CVC and the Philippine Long Distance and Telephone Company, which owns a 20 percent stake in SPi.
The sale will deliver a nearly 3x return for CVC's investors, a source familiar with the matter told Private Equity International. Under CVC's ownership, SPi has cemented its leadership in content outsourcing services to publisher clients, expanded its technology offerings in digital publishing, e-learning and data aggregation processes, diversified into financial analytics, entertainment, and business intelligence content, and also opened China and Nicaragua centres.
Manila-based SPi Global provides outsourced services to education, science, technical and medical research publishers. The company offers author support, content development, digitalisation, database management and data analytics across 12 delivery operations globally.
Following the acquisition, Partners will work with SPi's management team on a number of value creation initiatives to expand the company such as introducing additional offerings to SPi's service catalogue, growing its business applications segment, as well as bolt-on acquisitions.
Three of the firm’s senior executives – Cyrus Driver, managing director for Private Equity Directs Asia; Christian Unger, managing director for Industry Value Creation; and Florian Marquis, senior vice president for Private Equity Directs Asia – will also join SPi’s board of directors.
Partners manages over $57 billion of assets across private equity, real estate, infrastructure and private debt funds. Last year, the firm opened a services hub in Manila and early this year promoted Kevin Lu, head of Partners Group’s Singapore office and head of the Asian Investment Solutions unit, to chairman of Asia.