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Cinven to purchase CPA Global

UK-based private equity firm Cinven has acquired CPA Global, a patent management company, from Intermediate Capital (ICG) for £950m ($1.46bn).

ICG acquired a significant minority stake in CPA Global for £440m in January 2010 and put up the business for sale in December 2011.

Initially, several other private equity firms, including Carlyle Group, Kohlberg Kravis Roberts & Co and Advent International showed interest in acquisition but backed out later.

Cinven will finance the deal with £430m of debt split between £310m of senior term loans and £120m of mezzanine loans, provided by a group of banks including JP Morgan and HSBC.

Partner at Cinven Stuart McAlpine said CPA’s sector expertise and Asian portfolio capability will help company deliver growth in patent market over the next five years particularly in China.

Subject to the approval of a Scheme of Arrangement in Jersey and regulatory clearances, the sale is expected to close by the end of 2012 first quarter and will generate total proceeds of £387m for ICG plc and the funds advised by ICG.

Jersey-based CPA Global has grown into a multinational company and provides broader legal services outsourcing, including litigation support, document review and contract management.