Apax X fund sells minority stake in AffiniPay

(Sharecast News) - The FTSE 250 company described AffiniPay as a market leader in professional services software and payments, serving sectors such as legal, accounting, architectural, engineering, and construction.

It said the sale marked the full exit of Apax X's residual stake in AffiniPay, following the sale of legal case management software company MyCase to AffiniPay in June 2022.

The transaction, including the initial sale of MyCase to AffiniPay, would deliver a realised gross multiple of invested capital (MOIC) of 4.2x and a gross internal rate of return (IRR) of 93%.

On completion, AGA would have received total proceeds of around €28m from its investment in MyCase and subsequently in AffiniPay.

AGA said it expected to receive around €4m from its remaining look-through stake, representing a 17.5% discount to the last unaffected valuation as of 31 March.

The transaction was expected to close in the fourth quarter, subject to customary closing conditions.

AGA said the figures reflected its position in Apax X's overall investment in MyCase and AffiniPay, and were stated before any closing adjustments, fees, costs, and carried interest, with translations based on the latest available exchange rates.

Apax X acquired MyCase in October 2020, carving out the business from AppFolio, a publicly traded software company.

The investment strategy aimed to leverage the increasing technology adoption by law firms, focusing on opportunities in go-to-market, product expansion, mergers and acquisitions, and accelerating business growth post-carve-out.

In 2022, Apax X sold MyCase to AffiniPay while retaining a minority stake in the combined entity.

During its ownership, Apax X, with significant input from Apax's operational excellence practice, heavily invested in MyCase's sales and marketing functions and supported four strategic acquisitions, enhancing MyCase's product offerings and market position.

At 1219 BST, shares in Apax Global Alpha were down 1.14% at 156.2p.

Reporting by Josh White for Sharecast.com.