Buys from Brazil

12 May 2010 By Alexander Smith

The buyout firm has finally bagged 54 pct of Tivit after failing to buy the Brazilian IT group before its flotation last year. The saga isn t over yet. Apax still has to win over minorities and local regulators. Private equity seems willing go the extra mile to acquire growth.

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Apax Partners is making its first investment in Brazil, buying 54.25 percent of information technology and business process outsourcing provider Tivit.

The buyout firm is paying controlling shareholders, including Votorantim Novos Negocios and Patria Investimentos, 18.1 reais per share in cash, valuing the company at approximately 1.7 billion reais ($1 billion). Tivit's clients include 300 of Brazil's 500 largest companies.

Apax said that once the acquisition of the Tivit stake closed, it would begin a mandatory public tender offer to buy all remaining shares for the same price. This represents a premium of 21.39 percent over the average per share closing price since last September's initial public offering, adjusted for dividends and interest on equity paid during the period.

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