(Alliance News) - Apax Global Alpha Ltd on Friday said Apax IX Fund, company in which Apax Global is a limited partner, has agreed to sell its stake in ECI Software Solutions to Leonard Green & Partners.
Texas-based ECI Software Solutions provides business management software and services with a focus on cloud-based technologies.
FTSE 250-listed Apax Global - which invests in private equity and derived investments - said the deal values its investment in ECI at around EUR39.7 million, adding that as a part of the transaction, Apax IX will reinvest some of the proceeds in ECI, retaining a minority stake.
The sale represents an uplift of around 12% to ECI's fair value and an uplift of EUR4.3 million in Apax Global's adjusted net asset value as at September 30 of EUR1.12 billion. The Apax IX investment in ECI is expected to deliver a total gross multiple of invested capital of 4.2 times and a gross internal rate of return of 55%.
The transaction is expected to close in December.
Shares in Apax Global were trading 1.1% lower at 173.42 pence each on Friday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Apax Global Alpha (APAX)