Charterhouse Capital Partners LLP has beat out rival
private-equity firms in an auction for education-software provider
Skillsoft with a bid valued at more than $2 billion, according to
people familiar with the matter.
London-based Charterhouse will fund the acquisition using
leverage of around 7.5 times Skillsoft's annual earnings before
interest, taxes, depreciation and amortization, or Ebitda, which is
about $180 million, according to one of the people.
Advent International Corp., Bain Capital LLC and Berkshire
Partners LLC took Skillsoft private in 2010 in a $1.1 billion deal
that underscored the reduced ambitions of private-equity firms
still hurting from the financial crisis.
In 2012, Skillsoft bought a smaller rival, MindLeaders, in a
deal that lifted its debt-to-Ebitda ratio to above six times,
according to Moody's Investors Service.
According to Skillsoft's website, the company has provided
digital educational content such as videos and e-books to more than
19 million people through its more than 6,000 customers. Its
customers include PGA of America and the University of North
Carolina Wilmington.
Private-equity firms long have enjoyed investing in
education-related businesses. Textbook publisher Cengage Learning
Inc. earlier Thursday received court approval for its
bankruptcy-exit plan, which will see lenders including Apax
Partners LLP, Oaktree Capital Management and KKR & Co. take a
majority stake in the restructured company.
Also Thursday, Hellman & Friedman LLC purchased
educational-analytics company Renaissance Learning Inc. from
European private-equity firm Permira for $1.1 billion.
Write to Gillian Tan at gillian.tan@wsj.com
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