Advent plans to branch out into another UK tech company
US private equity predator Advent International plans to branch out into another UK tech company, sources say
US private equity predator Advent International is considering a move into another UK tech company, Mail on Sunday sources say.
The buyout giant is believed to be part of a group of companies surrounding fraud prevention software specialist GB Group, suggesting there could be a bidding war. Other said interested are Hg, KKR, Cinven and Permira.
A source said Advent and KKR have watched GB Group from time to time over the past year.
Fears: Private equity firm Advent has taken over Cobham and Ultra Electronics
Advent is said to be a controversial bidder, following its controversial takeovers of pioneering aerospace and defense groups Cobham and Ultra Electronics, which many MPs, pundits and military figures have called on to block.
Cheshire-based GB Group, worth £1.5bn, was founded in 1989 and is one of the largest companies listed on the AIM market. It provides fraud protection technology to companies including Revolut, which provides online banking, and skincare group Charlotte Tilbury. This month he confirmed he was considering a cash offer from private equity firm GTCR.
The Chicago-based suitor has until 5 p.m. on Oct. 4 to make a firm offer or walk away.
GTCR is in pole position because of its experience in the industry, having owned British rival Callcredit, a source said, adding that GTCR has a long-standing relationship with GB Group and is confident of funding a deal.
But another source said it could end in a bidding war with private equity firms actively considering offers. The interest in GB Group follows a flurry of possible deals for UK tech companies over the summer. They included cybersecurity firm Darktrace, MicroFocus International and Aveva, industrial software provider FTSE100.
US bidders are looking for deals in Britain as the falling pound makes it cheaper for them to buy businesses.
Advent has earned a reputation for sucking up British companies following its £4billion deal to privatize air-to-air refueling developer Cobham in 2020.
He promised to be a long-term investor after outcry from critics, such as former Royal Navy chief Admiral Lord West, led to restrictions on the deal. But he split and sold much of the business in 18 months.
He recently completed a £2.6bn takeover of Ultra Electronics, which makes sonobuoys for hunting submarines. Fresh fears have been raised over Ultra’s future after Advent recently told staff that some of its divisions were ‘no better situated under the British flag’, according to The Sun.
The Mail on Sunday can reveal that profits for the UK arm of Advent International have soared by 150%. It grossed £14.7m in 2021, according to its most recent accounts, compared to £5.9m in 2020.
All parties have been contacted for comment.