(Changes name of bank in 4th par to Jefferies from JP Morgan)
By Praveen Menon and Claire Ruckin
DUBAI Aug 19 (Reuters) – Bahrain-based Investcorp
said on Monday it agreed to sell a majority stake in British
online payments services firm Skrill Group to private equity
group CVC Capital Partners for 600 million euros ($800
million).
As part of the deal Investcorp will keep an approximate 25
percent stake in the company, sources said. It will also retain
a seat on Skrill’s board, the company said in a statement.
Investcorp Technology Partners, the private equity firm’s
technology arm, bought Skrill, or Moneybookers as it was
formerly called, for 105 million euros in March 2007, according
to Thomson Reuters LPC data and put the company up for sale
earlier this year, hiring Barclays to run the process.
CVC’s acquisition of a 75 percent stake in Skrill will be
funded with around 250 million euros of equity as well as debt
financing provided by Credit Suisse, RBS and Jefferies.
The leveraged loan financing includes a 275 million euro
term loan B, paying 500 bps over Euribor as well as a 30 million
euro revolving credit facility. Debt totals around 5 times
Skrill’s approximate 55 million euro earnings before interest,
taxes, depreciation and amortisation (EBITDA), two banking
sources said.
Investcorp initially invested 25 million euros for a
controlling stake in Skrill in 2007, when Skrill generated
revenues of 7.8 million euros and EBITDA of 3.7 million euros.
It now employs about 700 people and in 2012, generated over 200
million euros in revenues, Investcorp said.
Founded in 2001, Skrill is available in 200 countries and
territories, offering 100 local payment options and 40
currencies, according to Investcorp’s website. It expanded
through the acquisition of Austrian firm paysafecard.com for
around 140 million euros in July 2012.
($1 = 0.7500 euros)
(Editing by Andrew Torchia and Keiron Henderson)