Private equity firm Bridgepoint has cashed out its stake in UK tech manufacturing firm SPTS Technologies for $370m (£216m).
The group, which also owns Pret a Manger, sold the company to Nasdaq-listed Israeli firm Orbotech, making 2.6 times its original investment.
SPTS was formed in 2009 through a merger of several companies and makes technology for microchip processers used in smartphones and tablet computers. Bridgepoint bought the firm in 2011.
“Leadership of high-growth niches as well as the application of its technology to emerging niches in the microchip industry have made SPTS strategically attractive,” Bridgepoint partner Chris Bell said yesterday. “SPTS is a global business with 65 per cent of system revenues outside Europe.”
Orbotech will use about $300m of debt to fund the acquisition. The firm’s shares rose more than five per cent in US trading yesterday.
SPTS has gross revenue margins of about 48 per cent, on revenues of $180m.
The group has a manufacturing facility in Newport, Wales, as well as two further sites in the United States, at Allentown in Pennsylvania, and San Jose in California.
BEHIND THE DEAL
JEFFERIES | DANIEL AHARONI
- Before moving into banking advisory Aharoni founded his own business – an automotive electronics manufacturing firm
- He is also qualified as a solicitor at City law firm Herbert Smith after graduating with a First Class BA Hons degree in law
- Technology managing director Steven Abbott, European M&A managing director John Park and European co-head of financial sponsors James Seagrave were also on the deal
M&A advice came from Jefferies and Ernst & Young and commercial due diligence was undertaken by McKinsey. Financial due diligence was handled by Ernst & Young. Travers Smith worked on the legal side and ERM did the environmental due diligence for the deal. Instinctif Partners were PR advisers.