Apax X agrees to sell stake in AffiniPay
The Apax X Fund ("Apax X"), in which Apax Global Alpha Limited ("AGA") is a limited partner, has announced the sale of its minority stake in AffiniPay, a market leader in professional services software and payments serving legal, accounting, architectural, engineering and construction firms, to Genstar Capital and TA Associates. This will result in a full exit of Apax X's residual stake in AffiniPay following Apax X's sale of the legal case management software company MyCase to AffiniPay in June 2022.
Including the initial sale of MyCase to AffiniPay, this transaction will deliver a realised gross MOIC of 4.2x1 and a gross IRR of 93%1. On completion, and inclusive of prior distributions, AGA will have received total proceeds of c.€28m from Apax X's investment in MyCase and subsequently in AffiniPay. AGA expects to receive c.€4m on its remaining look-through stake which represents a discount of 17.5% to the last Unaffected Valuation2 at 31 March 2024. The transaction is expected to close in Q4 2024, subject to customary closing conditions.
Note that these figures relate to AGA's look-through position of Apax X's overall investment in MyCase and AffiniPay and are stated before taking into account any closing adjustments, fees, costs, and carried interest, and are translated based on the latest exchange rates available where applicable.
Apax X acquired MyCase in October 2020, carving out the business from AppFolio, a publicly traded software company. The investment thesis was to capitalise on rapidly increasing technology adoption by law firms by investing in a leading player with clear improvement opportunities in go-to-market, product expansion, M&A, and carve-out driven acceleration of the business.
In 2022, Apax X successfully sold MyCase to AffiniPay, retaining a minority stake in the combined business. During Apax X's ownership, and with significant involvement from Apax's Operational Excellence Practice, MyCase invested heavily into the sales and marketing function. The Apax team also supported four strategic acquisitions, which gave MyCase additional modules to cross-sell to customers as well as a leading position in other legal software categories.
AGA, whose shares are listed on the London Stock Exchange, provides investors with access to the Apax Private Equity Funds and a smaller portfolio of mostly Debt Investments. In 2019, AGA made a commitment of c.$450m3 to Apax X.
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Contact details
Investor Relations - AGA
Katarina Sallerfors
T: +44 7436908492
E: katarina.sallerfors@apax.com
Footnotes
| 1. | Gross MOIC and Gross IRR shown for Apax X EUR Fund |
| 2. | Unaffected Valuation is determined as the fair value in the last quarter before exit, when valuation is not affected by the exit process (i.e. because an exit was signed, or an exit was sufficiently close to being signed that the Apax Funds incorporated the expected exit multiple into the quarter end valuation) |
| 3. | AGA's commitment in Apax X of c.$450m represents a commitment of $225m in the USD tranche and €199.8m in the euro tranche |
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Notes
| 1. | Note that references in this announcement to Apax Global Alpha Limited have been abbreviated to "AGA" or "the Company". References to Apax Partners LLP have been abbreviated to "Apax" or "the Investment Adviser" |
| 2. | Please be advised that this announcement may contain inside information as stipulated under the Market Abuse Regulations (EU) NO. 596/2014 ("MAR") |
| 3. | This announcement is not for release, publication or distribution, directly or indirectly, in whole or in part, into or within the United States or to "US persons" (as defined in Regulation S under the United States Securities Act of 1933, as amended (the "Securities Act")) or into or within Australia, Canada, South Africa or Japan. Recipients of this announcement in jurisdictions outside the UK should inform themselves about and observe any applicable legal requirements in their jurisdictions. In particular, the distribution of the announcement may be restricted by law in certain jurisdictions |
| 4. | The information presented herein is not an offer for sale within the United States of any equity shares or other securities of Apax Global Alpha Limited ("AGA"). AGA has not been and will not be registered under the US Investment Company Act of 1940, as amended (the "Investment Company Act"). In addition, AGA's shares (the "Shares") have not been and will not be registered under the Securities Act or any other applicable law of the United States. Consequently, the Shares may not be offered or sold or otherwise transferred within the United States, or to, or for the account or benefit of, US Persons, except pursuant to an exemption from the registration requirements of the Securities Act and under circumstances which will not require AGA to register under the Investment Company Act. No public offering of the Shares is being made in the United States |
| 5. | This announcement may include forward-looking statements. The words "expect", "anticipate", "intends", "plan", "estimate", "aim", "forecast", "project" and similar expressions (or their negative) identify certain of these forward-looking statements. These forward-looking statements are statements regarding AGA's intentions, beliefs or current expectations concerning, among other things, AGA's results of operations, financial condition, liquidity, prospects, growth and strategies. The forward-looking statements in this presentation are based on numerous assumptions regarding AGA's present and future business strategies and the environment in which AGA will operate in the future. Forward-looking statements involve inherent known and unknown risks, uncertainties and contingencies because they relate to events and depend on circumstances that may or may not occur in the future and may cause the actual results, performance or achievements of AGA to be materially different from those expressed or implied by such forward looking statements. Many of these risks and uncertainties relate to factors that are beyond AGA's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behaviour of other market participants, the actions of regulators and other factors such as AGA's ability to continue to obtain financing to meet its liquidity needs, changes in the political, social and regulatory framework in which AGA operates or in economic or technological trends or conditions. Past performance should not be taken as an indication or guarantee of future results, and no representation or warranty, express or implied, is made regarding future performance. AGA expressly disclaims any obligation or undertaking to release any updates or revisions to these forward-looking statements to reflect any change in AGA's expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based after the date of this announcement, or to update or to keep current any other information contained in this announcement. Accordingly, undue reliance should not be placed on the forward-looking statements, which speak only as of the date of this announcement. |
About Apax Global Alpha Limited
AGA is a Guernsey registered closed-ended investment Company listed on the London Stock Exchange. It is regulated by the Guernsey Financial Services Commission.
AGA's objective is to provide shareholders with capital appreciation from its investment portfolio and regular dividends. The Company is targeting an annualised Total Return, across economic cycles, of 12-15% (net of fees and expenses).
The Company makes Private Equity investments in Apax Funds, and has a portfolio of primarily Debt Investments, derived from the insights gained via Apax's Private Equity activities.
Further information regarding the Company and its publications are available on the Company's website at www.apaxglobalalpha.com.
About Apax
Apax Partners LLP ("Apax") is a leading global private equity advisory firm. For over 50 years, Apax has worked to inspire growth and ideas that transform businesses. The firm has raised and advised funds with aggregate commitments of more than $77 billion. The Apax Funds invest in companies across four global sectors of Tech, Services, Healthcare and Internet/Consumer. These funds provide long-term equity financing to build and strengthen world-class companies. For further information about Apax, please visit www.apax.com.
Apax is authorised and regulated by the Financial Conduct Authority in the UK
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