19 Aug 2013
Investcorp, a leading provider and manager of alternative investment products, announced today that it has agreed the sale of Skrill Group to funds advised by CVC Capital Partners for a total enterprise value of €600 million ($800 million), subject to regulatory approvals. As part of the transaction, Investcorp will retain a substantial minority position in the company and will continue to retain a seat on the Skrill board.
Founded in 2001, Skrill is one of Europe’s largest online payment systems and among the world’s largest independent digital wallet providers with over 36 million account holders. The Skrill Digital Wallet enables any customer to make online payments conveniently and securely, as well as to send and receive money online instantly and in a cost-effective manner. Skrill’s mission is to be the preferred choice to pay and get paid globally.
Investcorp initially invested €25 million for a controlling stake in the company in March 2007 when Skrill generated revenues of €7.8 million and EBITDA of €3.7 million. Today, Skrill employs approximately 700 people and for the year ending 31 December 2012, generated over €200 million in revenues and €50 million in EBITDA.
Hazem Ben-Gacem, Head of Investcorp’s European Corporate Investment team, said: “Skrill and its management team have cultivated a market leading position during our ownership period over the past six years. We are proud to have been a part of a journey that has led to Skrill becoming one of the key global players in the online payments marketplace. We are looking forward to continuing our partnership with the Skrill management team and our new partners at CVC Capital Partners to pursue the company’s growth objectives.”
Investcorp’s European Corporate Investment team is experiencing its most active investment period in the firm’s 30 year history. Over the last nine months, the team have invested in three new portfolio companies: Tyrrells, the premium crisps and snacks maker, Hydrasun, the leading oil services provider, and the Scandinavian luxury brand, Georg Jensen. In the last twelve months, the team have successfully exited a number of its European portfolio companies including Armacell, the German developer of technical insulation materials, IPH Group, a leading French distributor of industrial supplies, and partially exited its investment in Fleetmatics, the Irish-based leading global provider of fleet management solutions for commercial fleet vehicles which is listed on the New York Stock Exchange.
Investcorp was advised on the transaction by Barclays (M&A) and SJ Berwin (legal).