DUBAI (Reuters) - Bahrain-based Investcorp INVB.BH 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 CVC.UL for 600 million euros (£511.3 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 (BARC.L) 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 JP Morgan.
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.
Editing by Andrew Torchia and Keiron Henderson