SSP ANNOUNCE RECORD RESULTS & AGREES TO BE ACQUIRED BY HELLMAN & FRIEDMAN
SSP today announced record results & confirmed agreement to an acquisition by H&F Sensor Bidco Limited, a company formed & ultimately owned by funds managed or advised by Hellman & Friedman LLC (H&F) & SSP’s existing management team. The deal values SSP at approximately £198 million.
H&F Bidco, a newly incorporated company, has been created following an approach by H&F earlier this year. After lengthy discussions, the executive directors of SSP & H&F believe that the new venture will provide a compelling opportunity. The combination of SSP’s experience in providing leading IT systems & software solutions, with the financial resources & deep industry expertise of H&F should benefit SSP, its clients, partners, employees & management, & enable it to continue its strong growth record.
SSP’s management has demonstrated an ability to acquire complementary businesses & successfully integrate them into the SSP Group, most recently with the acquisition of Sirius, which is reflected in the record annual results.
Highlights from the results include:
· Revenues increased by 67% to £64.4m (2007: £38.6m)
· Organic revenue growth of 12% - significant level of new customer wins
· Profit before tax up 38% to £8.8m (2007: £6.4m)
· Strengthened international position:-
- successfully integrated African INSURE/90 insurance business
- recent acquisition of Asia-Pacific INSURE/90 insurance business
· Business opportunities strengthened through:-
- extended international rights to InsureJ latest SOA Java product via acquisition of Koukia
- further investment in eBusiness & insurance company systems
Commenting on the results & the deal David Rasche, Executive Chairman of SSP, said: “The Board believes the outlook for the business is positive, both in the UK & overseas. With our strong recurring & visible revenues from a large, secure & increasingly international customer base, we expect to continue to grow organically & maintain good operating margins in the coming year & beyond.”
“This transaction recognises the significant value that has been created for SSP shareholders since we floated in October 2006. Many of our shareholders invested in the IPO at 98 pence per share & will now realise a premium of approximately 94 per cent. in cash over two years. This will be good news for our customers & staff as it will allow us to retain talent in the business as we continue to expand over the coming years. Since admission to trading on AIM, SSP has established itself as a leading provider of IT systems & services to the insurance sector in the UK & selected international markets. This has been achieved through a combination of organic growth & acquisitions, including the recent purchase of Sirius.”
Stephen Duckett, a director of H&F Bidco, said: “H&F is delighted to have the opportunity to invest in SSP. We are excited about supporting SSP’s management team as they continue successfully to grow the business & we look forward to helping them build on a well established market position & strong customer relationships.”
The acquisition is being unanimously recommended by the Independent Directors, who consider the terms of the Acquisition to be fair & reasonable, having been so advised by KBC Peel Hunt Ltd.
23/07/2008
