UK - Xafinity Group has been sold by its existing private equity owner to another global private equity firm Advent International, for an undisclosed sum.
The pension administration company, which comprises a number of arms such as Xafinity Paymaster and Xafinity Claybrook, was first bought by Duke Street private equity firm in 2005 from Hogg Robinson Benefit Consultants.
Xafinity currently provides pensions administration, payroll and consulting services for around 1,100 public sector entities and companies, covering 2.1 million pensioners, and is said to have enjoyed consistent growth under Duke Street ownershup, including the purchase of Hazell Carr in 2008.
However, officials revealed the board had decided it would benefit from a new owner to “support the next stage of the company’s organic and acquisitive growth”.
Xafinity said the existing management of the company would continue, and that it has a “pipeline of further targets to build on its current market position”. It added the new backing provided by Advent would give it “greater scope and financial muscle to achieve these ambitions”.
Tim Robinson, chief executive of Xafinity, said: “We have significant ambitions for the development and expansion of Xafinity domestically and overseas. The sector expertise, funding and supportive approach that is the hallmark of Advent International will help us achieve these ambitions and accordingly make Xafinity an even stronger company.”
Jeff Paduch, director at Advent International who led the investment, said: “We have followed Xafinity closely for three years and feel that the timing is right for us to invest. We will continue to support the operational improvements that Tim Robinson and his team have implemented and look forward to supporting additional initiatives that will drive growth across Xafinity’s three divisions.”
Close Brothers was financial adviser to Advent International and Weil, Gotshal & Manges were legal advisers. Financing for the transaction was provided by a syndicate including Ares Management, Babson Capital, Bank of Ireland, Barclays, Calyon, Lloyds TSB Corporate Markets acquisition finance and Royal Bank of Scotland.
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