LPC-Banks source £450m to back Civica sale

LONDON, May 3 (Reuters) - Banks are readying around £450m of debt financing to back a sale of IT and outsourcing firm Civica as a sale process gets set to kick off shortly, banking sources said on Wednesday.

OMERS Private Equity acquired Civica from 3i in 2013 for £390m, backed with £255m of leveraged loans, according to Thomson Reuters LPC data.

It has now decided to sell the company, hiring Goldman Sachs on the process, which is due to attract a number of interested buyers, the sources said.

OMERS declined to comment.

Some £450m of debt financing equates to around 6.5 times Civica’s approximate £60m Ebitda, the sources said.

Civica is the latest sale set to kick off as the number of M&A situations in the market grows.

Cash rich lenders will be gunning for buyout firms to win the auction processes, in a bid to put money to work.

Civica provides a wide range of specialised software systems and technology-based outsourcing for clients in sectors including the government and national security, housing, healthcare, education and regulated markets such as the police, local councils and law firms.

Editing by Christopher Mangham