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Apax Partners Announces First Investment in Brazil
SÃO PAULO, May 10, 2010-- Funds advised by Apax Partners today announced they have entered into a
definitive agreement to acquire a controlling interest in TIVIT, the leader
in integrated IT and BPO services in Latin America. Under the terms of the
agreement, Apax will acquire 54.25% of TIVIT's issued and outstanding capital
stock from TIVIT's controlling shareholders, including Votorantim Novos
Negócios and Pátria Investimentos, at a price of R$18.10 per share in cash,
valuing the company at approximately $1 billion (R$1.7 billion,
EUR760 million).
TIVIT provides world-class integrated services organized in three main
lines of business: IT infrastructure, Application Systems and Business
Process Outsourcing. Today, the company has 16 locations in Brazil's main
regions and a vast infrastructure that provides scalability, reliability and
information security. TIVIT manages strategic operations that are critical to
the businesses of its clients, which include 300 of Brazil's 500 largest
companies. The company provides services to major banks, insurers, credit
card companies, manufacturers, public utilities and retailers.
Following the closing of the acquisition of TIVIT shares from the
controlling shareholders, Apax Funds will commence a mandatory public tender
offer to acquire all remaining shares of TIVIT for the same per share price
in cash paid to the controlling shareholders (adjusted for indexation). The
per share purchase price represents a premium of 21.39% over the average per
share closing price since the IPO, adjusted for dividends and interest on
equity paid in the period. Apax Funds are committing 100% of the funding for
the acquisition. The closing of the acquisition is subject to customary
conditions contained in the definitive purchase agreement.
Luiz Mattar, CEO of TIVIT, will retain a substantial portion of his
ownership stake in the company and has committed to lead the execution of its
current growth strategy. "The Apax transaction represents significant value
creation to our shareholders, while also giving us enhanced flexibility to
execute on our long-term strategy," said Mattar. "Apax Partners is a patient
investor with a proven track record of investing in successful, growing
companies. We are excited about this new partnership and TIVIT's future
prospects."
Martin Halusa, Chief Executive of Apax Partners, said: "Our first
investment in Brazil advances our global strategy of investing in large
companies that have strong, established market positions and the potential to
expand. We are excited by Brazil and have been actively sourcing
opportunities in the country for some years. TIVIT is a great example of our
Tech/Telecom sector team focusing on a global trend to identify an industry
leader operating in this exciting market."
"Apax is attracted to TIVIT's market leadership in both IT Outsourcing
and Business Process Outsourcing," said Jason Wright, Partner at Apax. "Luiz
Mattar and his team have built a solid foundation for continued growth and
expansion and enjoy the tailwinds of a strong Brazilian economy. Providing
the highest quality customer service to Brazil's largest companies will
remain TIVIT's top priority."
In the last 12 months, Apax Funds have agreed to five new investments:
Sophos, a UK-based software company; Psagot, an Israeli Fund manager; Marken,
a UK-based clinical trials logistics business; Bankrate, a US-based Internet
consumer banking marketplace; and now, TIVIT. In each case Apax Funds have
been the sole private equity investor. During the same period, Apax Funds
have successfully sold, in whole or in part, their investments in Tommy
Hilfiger, Bezeq, Promethean World, Spectrum Holding Company and rue21. The
funds that Apax Partners advises are long-term investors, with an average
holding period of more than five years.
Credit Suisse acted as lead M&A adviser to Apax Partners. JP Morgan also
advised Apax Partners in the transaction. Skadden, Arps, Slate, Meaghan &
Flom and Barbosa, Müssnich & Aragão acted as legal advisers to Apax Partners.
PwC acted as financial diligence adviser to Apax Partners.
NOTES TO EDITORS
About Apax Partners
Apax Partners is one of the world's leading private equity investment
groups. It operates across the United States, Europe and Asia and has more
than 35 years of investing experience. Funds under the advice and management
of Apax Partners globally total over $35 billion. These Funds provide
long-term equity financing to build and strengthen world-class companies.
Apax Partners Funds invest in companies across its global sectors of Tech &
Telecom, Retail & Consumer, Media, Healthcare and Financial & Business
Services. For more information visit: http://www.Apax.com.
Technology & Telecoms is one of the five sectors on which Apax Partners
focuses. Notable current and historic investments in the sector include
Promethean World, a leader in the rapidly growing global market for
interactive learning technology; SMART Technologies, a Canadian provider of
interactive collaboration products; TDC A/S, the pan-European telecoms
business headquartered in Denmark; Weather Investments, an international
telecommunications business; and Inmarsat and Intelsat, which are both global
satellite operators.
About TIVIT S.A.
TIVIT S.A. (Bovespa: TVIT3), the leader in integrated IT and
BPO services in Latin America, has a portfolio organized into three business
areas: IT infrastructure, Application Systems and BPO. Today it has 16 units
located in Brazil's main regions and a vast infrastructure that provides
scalability, reliability and information security. TIVIT manages strategic
operations that are critical to the businesses of its clients, which include
300 of the country's 500 largest companies. The company provides services to
major banks, insurers, credit card companies, manufacturers, public utilities
and retailers.
Source: Apax Partners
For further information, please contact: Ben Harding, Tel: +44(0)20-7872-6401, Email: ben.harding@apax.com
Apax Partners Announces First Investment in Brazil
SÃO PAULO, May 10, 2010-- Funds advised by Apax Partners today announced they have entered into a
definitive agreement to acquire a controlling interest in TIVIT, the leader
in integrated IT and BPO services in Latin America. Under the terms of the
agreement, Apax will acquire 54.25% of TIVIT's issued and outstanding capital
stock from TIVIT's controlling shareholders, including Votorantim Novos
Negócios and Pátria Investimentos, at a price of R$18.10 per share in cash,
valuing the company at approximately $1 billion (R$1.7 billion,
EUR760 million).
TIVIT provides world-class integrated services organized in three main
lines of business: IT infrastructure, Application Systems and Business
Process Outsourcing. Today, the company has 16 locations in Brazil's main
regions and a vast infrastructure that provides scalability, reliability and
information security. TIVIT manages strategic operations that are critical to
the businesses of its clients, which include 300 of Brazil's 500 largest
companies. The company provides services to major banks, insurers, credit
card companies, manufacturers, public utilities and retailers.
Following the closing of the acquisition of TIVIT shares from the
controlling shareholders, Apax Funds will commence a mandatory public tender
offer to acquire all remaining shares of TIVIT for the same per share price
in cash paid to the controlling shareholders (adjusted for indexation). The
per share purchase price represents a premium of 21.39% over the average per
share closing price since the IPO, adjusted for dividends and interest on
equity paid in the period. Apax Funds are committing 100% of the funding for
the acquisition. The closing of the acquisition is subject to customary
conditions contained in the definitive purchase agreement.
Luiz Mattar, CEO of TIVIT, will retain a substantial portion of his
ownership stake in the company and has committed to lead the execution of its
current growth strategy. "The Apax transaction represents significant value
creation to our shareholders, while also giving us enhanced flexibility to
execute on our long-term strategy," said Mattar. "Apax Partners is a patient
investor with a proven track record of investing in successful, growing
companies. We are excited about this new partnership and TIVIT's future
prospects."
Martin Halusa, Chief Executive of Apax Partners, said: "Our first
investment in Brazil advances our global strategy of investing in large
companies that have strong, established market positions and the potential to
expand. We are excited by Brazil and have been actively sourcing
opportunities in the country for some years. TIVIT is a great example of our
Tech/Telecom sector team focusing on a global trend to identify an industry
leader operating in this exciting market."
"Apax is attracted to TIVIT's market leadership in both IT Outsourcing
and Business Process Outsourcing," said Jason Wright, Partner at Apax. "Luiz
Mattar and his team have built a solid foundation for continued growth and
expansion and enjoy the tailwinds of a strong Brazilian economy. Providing
the highest quality customer service to Brazil's largest companies will
remain TIVIT's top priority."
In the last 12 months, Apax Funds have agreed to five new investments:
Sophos, a UK-based software company; Psagot, an Israeli Fund manager; Marken,
a UK-based clinical trials logistics business; Bankrate, a US-based Internet
consumer banking marketplace; and now, TIVIT. In each case Apax Funds have
been the sole private equity investor. During the same period, Apax Funds
have successfully sold, in whole or in part, their investments in Tommy
Hilfiger, Bezeq, Promethean World, Spectrum Holding Company and rue21. The
funds that Apax Partners advises are long-term investors, with an average
holding period of more than five years.
Credit Suisse acted as lead M&A adviser to Apax Partners. JP Morgan also
advised Apax Partners in the transaction. Skadden, Arps, Slate, Meaghan &
Flom and Barbosa, Müssnich & Aragão acted as legal advisers to Apax Partners.
PwC acted as financial diligence adviser to Apax Partners.
NOTES TO EDITORS
About Apax Partners
Apax Partners is one of the world's leading private equity investment
groups. It operates across the United States, Europe and Asia and has more
than 35 years of investing experience. Funds under the advice and management
of Apax Partners globally total over $35 billion. These Funds provide
long-term equity financing to build and strengthen world-class companies.
Apax Partners Funds invest in companies across its global sectors of Tech &
Telecom, Retail & Consumer, Media, Healthcare and Financial & Business
Services. For more information visit: http://www.Apax.com.
Technology & Telecoms is one of the five sectors on which Apax Partners
focuses. Notable current and historic investments in the sector include
Promethean World, a leader in the rapidly growing global market for
interactive learning technology; SMART Technologies, a Canadian provider of
interactive collaboration products; TDC A/S, the pan-European telecoms
business headquartered in Denmark; Weather Investments, an international
telecommunications business; and Inmarsat and Intelsat, which are both global
satellite operators.
About TIVIT S.A.
TIVIT S.A. (Bovespa: TVIT3), the leader in integrated IT and
BPO services in Latin America, has a portfolio organized into three business
areas: IT infrastructure, Application Systems and BPO. Today it has 16 units
located in Brazil's main regions and a vast infrastructure that provides
scalability, reliability and information security. TIVIT manages strategic
operations that are critical to the businesses of its clients, which include
300 of the country's 500 largest companies. The company provides services to
major banks, insurers, credit card companies, manufacturers, public utilities
and retailers.
Source: Apax Partners
For further information, please contact: Ben Harding, Tel: +44(0)20-7872-6401, Email: ben.harding@apax.com