Private equity swoops for SSP

Free trial analysis: SSP in a suitor's gaze

Software giant SSP is to be acquired by a private equity firm in deal that values the company at £198m.

The sale to buy-out firm Hellman & Friedman was announced as the software house unveiled record results.

Revenues increased by 67% to £64.4m, compared to £38.6m in 2007, with organic revenue growth of 12%.

Profit before tax was up 38% to £8.8m, compared to £6.4m in the previous year.

David Rasche, executive chairman of SSP, said: “The Board believes the outlook for the business is positive, both in the UK and overseas. With our strong recurring and visible revenues from a large, secure and increasingly international customer base, we expect to continue to grow organically and maintain good operating margins in the coming year and 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 and will now realise a premium of approximately 94 per cent. in cash over two years. This will be good news for our customers and 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 and services to the insurance sector in the UK and selected international markets. This has been achieved through a combination of organic growth and acquisitions, including the recent purchase of Sirius.”

SSP will be acquired by H&F Sensor Bidco, a company formed and ultimately owned by funds managed or advised by Hellman & Friedman and SSP’s existing management team.

Hellman & Friedman approached SSP earlier this year.

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 and we look forward to helping them build on a well established market position and strong customer relationships.”