Epiris announces the sale of OAG for approximately $215 million

POSTED 16 February 2017

Epiris is pleased to announce that its portfolio company AXIO Group (“AXIO”) has sold OAG, the global leader in aviation information and intelligence, to funds managed by Vitruvian Partners for approximately $215 million. This is the fifth major realisation from AXIO’s portfolio.

Electra Private Equity PLC (“Electra”) has received proceeds from AXIO of £104 million*, an uplift of £28 million or 37% and equivalent to an increase in its NAV of 60 pence per share on the valuation of Electra’s investment at 30 September 2016. The sale has increased the total cash proceeds received by Electra from its investment in AXIO to more than £350 million, or 3.9x original cost, and the total return, including Electra’s investment in the remaining AXIO businesses, to 4.8x original cost.

OAG is the world’s leading provider of flight information (schedules and status) and related analytical tools. It serves a wide range of customers across the travel sector including airlines, airports and airport services providers, travel distribution players, government agencies, aircraft manufacturers, consultancies and corporate customers. Based in Luton in the UK, it has operations in Boston, Massachusetts and sales offices in North America and Asia.

Alex Cooper-Evans, Partner at Epiris, said:

“OAG is another AXIO success story. The business has been transformed during the period of our ownership with strategic focus, operational improvement and investment. OAG has grown earnings at more than 30% a year since 2013 and now has a clear strategy to continue its growth in the future. Phil Callow and his team have done a fantastic job with the business and we wish them well for the next chapter in the OAG story.

“The sale of OAG takes our realised return on this investment to 3.9x cost, and the total return to 4.8x. The remaining businesses, RISI and TechInsights, have been repositioned since 2013, not only strategically but also in terms of scale, with earnings having more than quadrupled.”

Henry Elkington, CEO of AXIO Group, said:

“Under AXIO’s ownership OAG has focussed its activities on subscription data services, disposing of non-core events and media products. OAG acquired FlightView in 2015 to expand its customer base, and strengthen its leadership in flight status data services.

“We will continue to improve our remaining portfolio business by focussing on our leadership positions, driving efficiency, and investing for growth.”

Alex Fortescue, Alex Cooper-Evans and Sarah Williams are responsible for the investment in AXIO Group.

Epiris refers to Epiris Managers LLP acting on behalf of its clients, including Electra Private Equity PLC.

Ends

* At current exchange rates.

This is not an offer of securities for sale in the United States and securities may not be offered or sold in the United States absent registration or an exemption from registration. Any investment in any Epiris fund shall be qualified in its entirety by the terms and conditions of that fund’s offering materials including any prospectus.

For further information please contact:

Andrew Honnor, Matthew Goodman, Matthieu Roussellier, Greenbrook Communications
+44 (0)20 7952 2000

Nicholas Board and Andrew Kenny, Epiris
+44 (0)20 7306 3902

Note to Editors:

About Epiris
Epiris is a top-decile private equity fund manager**.

Epiris, together with its predecessor firms, has managed the business and affairs of Electra Private Equity PLC, a listed private equity investment trust, for four decades. Epiris has also managed private equity investment programmes for pension funds, financial institutions and family offices. During this time Epiris has invested in excess of £5 billion in over 200 deals. Since 2011, Epiris has invested £1 billion in buyouts and co-investments and loan-to-own debt investments, in respect of which it has delivered a gross IRR of 38%***.

As at 30 September 2016, the firm had funds under management of £2.4 billion.

For further information please visit www.epiris.co.uk.

Issued by Epiris Managers LLP which is authorised and regulated by the Financial Conduct Authority.

**      Refers to the 2009 and 2012 investment pools comprising Buyout & Co-investment, Secondary and Debt investments managed on behalf of Electra Private Equity PLC; comparator data supplied by Preqin.

***    As at 30 September 2016 adjusted for subsequent investments and realisations. Gross IRR does not reflect adjustments for investment management and administration costs. Past performance is no guarantee of future results.

About AXIO Group
AXIO Group manages a portfolio of market-leading information businesses providing critical, and often industry-standard, information and tools. The group’s other businesses are TechInsights, a leading intellectual property services and technical intelligence provider, and RISI, the world’s leading price reporting and analytics provider to the forest products sector.

For further information, please visit www.axiogroup.net