Investcorp to sell Skrill Group for $800 million

Investcorp, a major provider and manager of alternative investment products, said it had agreed for the sale of Skrill Group to funds advised by CVC Capital Partners for a total enterprise value of 600 million euros ($800 million), subject to regulatory approvals.
As part of the transaction, Investcorp will retain a substantial minority position in the company and will continue to retain a seat on the Skrill board.
Skrill, founded in 2001, is one of Europe’s largest online payment systems and among the world’s largest independent digital wallet providers with over 36 million account holders.
The Skrill Digital Wallet enables any customer to make online payments conveniently and securely, as well as to send and receive money online instantly and in a cost-effective manner.
Skrill’s mission is to be the preferred choice to pay and get paid globally.
Investcorp initially invested 25 million euros for a controlling stake in the company in March 2007 when Skrill generated revenues of 7.8 million euros and EBITDA of 3.7 million euros.
Today, Skrill employs approximately 700 people and for the year ending Dec. 31, 2012, generated over 200 million euros in revenues and 50 million euros in EBITDA.
Mohammed Al-Shroogi, president for Gulf business at Investcorp, said: “Skrill has been a high-quality investment for Investcorp.”
He said: “We are proud to have supported the management from the beginning of our partnership and happy to have helped them build a strong presence within the online payment and digital wallet platforms worldwide. As we continue to retain a minority stake in Skrill, we look forward to continuing to partner with the management team as it strives to continue to create value and realize the company’s full growth potential.”
Investcorp’s European Corporate Investment team is experiencing its most active investment period in the firm’s 30-year history.
Over the last nine months, the team invested in three new portfolio companies — Tyrrells, a premium crisps and snacks maker; Hydrasun, a major oil services provider; and the Scandinavian luxury brand, Georg Jensen.
In the last 12 months, the team successfully exited a number of its European portfolio companies, including Armacell, the German developer of technical insulation materials, IPH Group, a major French distributor of industrial supplies, and partially exited its investment in Fleetmatics, the Irish-based major global provider of fleet management solutions for commercial fleet vehicles, which is listed on the New York Stock Exchange.
Investcorp was advised on the transaction by Barclays (M&A) and SJ Berwin (legal).