(Alliance News) - Guernsey-based private equity investment trust Apax Global Alpha Ltd on Wednesday said it expects to invest EUR23 million in Apex X Fund's "social good software platform" merger.
The Apax X Fund - in which Apax Global Alpha is a limited partner - has agreed to acquire majority stakes in non-profit software companies EveryAction and Social Solutions. The transactions are expected to close in the third quarter of 2021, Apax Global Alpha said.
The EUR23 million figure represents the FTSE 250-listed trust's look-through position of the Apax X Fund's larger investment.
Apax Global Alpha committed USD450 million to the Apax X Fund in July 2020.
Apax X Fund plans to combine EveryAction and Social Solutions with its recent investee CyberGrants, to produce a leading software-as-a-service provider for the "social good ecosystem" of non-profits and corporate philanthropists.
The new company will be the second largest social good software company globally, Apax Global Alpha said, with a combined enterprise value of USD2 billion and expected annual revenue of over USD200 million.
"The combined company brings together EveryAction's omni-channel engagement platform for non-profits...with Social Solutions' case management software that provides actionable, data-driven insights...as well as CyberGrants' solutions for corporate social responsibility, employee engagement, and volunteer management that maximises the impact of corporate philanthropy," the trust said.
Besides working with a range of Fortune 500 companies, Apax Global Alpha said the three businesses have access to a network of 650,000 non-profit organizations and 38 million donors and volunteers.
Apax's partner Jason Wright and principal Adam Garson said: "All three companies are mission-driven and have leading solutions in their respective segments. This combination will truly maximize their collective impact by bringing together world-class talent and products. The resulting scale and connectivity between donors and non-profits will help reshape philanthropic giving."
Shares in Apax Global Alpha were trading up 0.7% at 211.50 pence each in London on Wednesday morning.
By Scarlett Butler; scarlettbutler@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
Apax Global Alpha (APAX)