REG - Apax Global Alpha Ld - Paycor to be acquired by Paychex

Apax Global AlphaAnnouncement

08/01/2025 07:00

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RNS Number : 4870S  Apax Global Alpha Limited  08 January 2025

Paycor to be acquired by Paychex

The Apax IX Fund ("Apax IX"), in which Apax Global Alpha Limited ("AGA") is a
limited partner, has announced that portfolio company Paycor HCM, Inc.
(Nasdaq: PYCR) ("Paycor"), a leading provider of human capital management
(HCM) software, has entered into a definitive agreement with Paychex, Inc.
(Nasdaq: PAYX) ("Paychex") to be acquired in an all-cash transaction for
$22.50 per share.

 

Including prior distributions, this transaction is expected to deliver a total
gross Multiple on Invested Capital ("MOIC") of 3.3x(1) and a gross Internal
Rate of Return ("IRR") of 26%(1) for Apax IX. The transaction values AGA's
look-through investment in Paycor at approximately €38m. This represents an
uplift of c.69% to the last Unaffected Valuation(2) and an uplift of c.€16m
in the Net Asset Value ("NAV") of AGA at 30 September 2024. The transaction is
expected to close in H1 2025, subject to customary closing conditions.

 

Note that these figures relate to AGA's look-through position of Apax IX's
overall investment in Paycor and are stated before taking into account any
closing adjustments, fees, costs, Holdco facilities, and carried interest, and
are translated based on the latest exchange rates available where
applicable(3).

 

The Apax Funds acquired a majority stake in Paycor in 2018 and took the
Company public in 2021. Over the past six years, Apax has partnered closely
with Paycor's leadership team in the transformation of the company -
accelerating its top-line growth, expanding it into tier one cities across
North America, and building a modern HCM platform for the mid-market.

 

AGA, whose shares are listed on the London Stock Exchange, provides investors
with access to a diversified portfolio of private equity funds advised by Apax
as well as a focused portfolio of mostly debt investments. In 2016, AGA made a
commitment of c.$350m(4) to Apax IX.

 

For more information about the transaction, please visit:
https://www.apax.com/news/press-releases/
(https://www.apax.com/news/press-releases/)

END

 

Contact details

investor.relations@apaxglobalalpha.com

 

Footnotes

 1.  Gross MOIC and Gross IRR shown for Apax IX EUR Fund
 2.  Unaffected Valuation is determined as the fair value as at 30 September 2024
 3.  Based on Bloomberg closing EUR/USD FX rate on 6 January 2025 of 1.039
 4.  AGA's commitment in Apax IX of c.$350m represents a commitment of $175m in the
     USD tranche and €154.5m in the euro tranche.

Notes

 

 1.  Note that references in this announcement to Apax Global Alpha Limited have
     been abbreviated to "AGA" or "the Company". References to Apax Partners LLP
     have been abbreviated to "Apax" or "the Investment Adviser"
 2.  Please be advised that this announcement may contain inside information as
     stipulated under the Market Abuse Regulations (EU) NO. 596/2014 ("MAR")
 3.  This announcement is not for release, publication or distribution, directly or
     indirectly, in whole or in part, into or within the United States or to "US
     persons" (as defined in Regulation S under the United States Securities Act of
     1933, as amended (the "Securities Act")) or into or within Australia, Canada,
     South Africa or Japan. Recipients of this announcement in jurisdictions
     outside the UK should inform themselves about and observe any applicable legal
     requirements in their jurisdictions. In particular, the distribution of the
     announcement may be restricted by law in certain jurisdictions
 4.  The information presented herein is not an offer for sale within the United
     States of any equity shares or other securities of Apax Global Alpha Limited
     ("AGA"). AGA has not been and will not be registered under the US Investment
     Company Act of 1940, as amended (the "Investment Company Act"). In addition,
     AGA's shares (the "Shares") have not been and will not be registered under the
     Securities Act or any other applicable law of the United States. Consequently,
     the Shares may not be offered or sold or otherwise transferred within the
     United States, or to, or for the account or benefit of, US Persons, except
     pursuant to an exemption from the registration requirements of the Securities
     Act and under circumstances which will not require AGA to register under the
     Investment Company Act. No public offering of the Shares is being made in the
     United States
 5.  This announcement may include forward-looking statements. The words "expect",
     "anticipate", "intends", "plan", "estimate", "aim", "forecast", "project" and
     similar expressions (or their negative) identify certain of these
     forward-looking statements. These forward-looking statements are statements
     regarding AGA's intentions, beliefs or current expectations concerning, among
     other things, AGA's results of operations, financial condition, liquidity,
     prospects, growth and strategies. The forward-looking statements in this
     presentation are based on numerous assumptions regarding AGA's present and
     future business strategies and the environment in which AGA will operate in
     the future. Forward-looking statements involve inherent known and unknown
     risks, uncertainties and contingencies because they relate to events and
     depend on circumstances that may or may not occur in the future and may cause
     the actual results, performance or achievements of AGA to be materially
     different from those expressed or implied by such forward looking statements.
     Many of these risks and uncertainties relate to factors that are beyond AGA's
     ability to control or estimate precisely, such as future market conditions,
     currency fluctuations, the behaviour of other market participants, the actions
     of regulators and other factors such as AGA's ability to continue to obtain
     financing to meet its liquidity needs, changes in the political, social and
     regulatory framework in which AGA operates or in economic or technological
     trends or conditions. Past performance should not be taken as an indication or
     guarantee of future results, and no representation or warranty, express or
     implied, is made regarding future performance. AGA expressly disclaims any
     obligation or undertaking to release any updates or revisions to these
     forward-looking statements to reflect any change in AGA's expectations with
     regard thereto or any change in events, conditions or circumstances on which
     any statement is based after the date of this announcement, or to update or to
     keep current any other information contained in this announcement.
     Accordingly, undue reliance should not be placed on the forward-looking
     statements, which speak only as of the date of this announcement.

 

 

About Apax Global Alpha Limited

 

AGA is a Guernsey registered closed-ended investment Company listed on the
London Stock Exchange. It is regulated by the Guernsey Financial Services
Commission.

 

AGA's objective is to provide shareholders with capital appreciation from its
investment portfolio and regular dividends. The Company is targeting an
annualised Total Return, across economic cycles, of 12-15% (net of fees and
expenses).

 

The Company makes Private Equity investments in Apax Funds, and has a
portfolio of primarily debt investments, derived from the insights gained via
Apax's Private Equity activities.

 

Further information regarding the Company and its publications are available
on the Company's website at www.apaxglobalalpha.com.

 

 

About Apax

 

Apax Partners LLP ("Apax") is a leading global private equity advisory firm.
For over 50 years, Apax has worked to inspire growth and ideas that transform
businesses. The firm has raised and advised funds with aggregate commitments
of nearly $80 billion. The Apax Funds invest in companies across three global
sectors of Tech, Services, and Internet/Consumer. These funds provide
long-term equity financing to build and strengthen world-class companies. For
further information about Apax, please visit www.apax.com
(http://www.apax.com/) .

 

Apax is authorised and regulated by the Financial Conduct Authority in the UK

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