TORONTO, July 18 12, 2022 (GLOBE NEWSWIRE) — Clairvest Group Inc. (TSX: CVG) (“CVG”), today announced that Meriplex Communications, Ltd. (“Meriplex” or the “Company”), a portfolio company of CVG and Clairvest Equity Partners V (“CEP V”, collectively “Clairvest”), have completed a partial realization with Vitruvian Partners (“Vitruvian”). The transaction involves the acquisition of a majority stake by Vitruvian and a significant reinvestment of shares by Meriplex shareholders who will participate in the next chapter of growth.
Meriplex is a leading provider of managed IT, cybersecurity, and network services focused on SMBs and midsize businesses in the United States. Since Clairvest partnered with Meriplex management and CEO David Henley in October 2018, the company has successfully built a sales organization that generates industry-leading organic growth rates and achieved 13 acquisitions that expanded its reach to 12 offices in eight US states. EBITDA in 2022 should be 10 times higher than in 2017.
At closing, Clairvest’s share of the cash proceeds is approximately US$160 million (CVG US$48 million). Clairvest will continue to own approximately 18% of Meriplex after the transaction. The sale is expected to positively impact Clairvest’s book value per share by approximately $1 over book value as of March 31, 2022.
“We are incredibly proud of the Meriplex team. They successfully executed an aggressive growth plan and built the company into a national player,” said Mitch Green, CEO of Clairvest. “David and his management team have worked tirelessly in their search for opportunities to grow and strengthen the business. We are delighted to reinvest a significant stake in the transaction with our management partners and welcome Vitruvian, who we believe will be an excellent partner for this next stage of growth.
“Meriplex chose Clairvest in 2018 as a private equity partner to help management see the business from a different perspective and provide guidance as we grew the organization at a rapid pace. They have been reliable partners throughout our journey and played an active role where and when needed,” said David Henley, Founder and CEO of Meriplex. “I’m very proud of what we’ve accomplished together and look forward to continuing to grow Meriplex and our customer relationships with two great partners – Vitruvian and Clairvest.”
Q Advisors, a global TMT investment banking boutique, acted as financial advisor to Meriplex in connection with the transaction. Torys LLP acted as legal counsel to Meriplex.
Clairvest’s mission is to partner with entrepreneurs to help them build strategically important businesses. Founded in 1987 by a group of successful Canadian entrepreneurs, Clairvest is a top-performing private equity management firm with over C$3.2 billion in capital under management. Clairvest invests its own capital and that of third parties through the Clairvest Equity Partners limited partnerships in owner-managed businesses. Under the current management team, Clairvest has initiated investments in 58 different platform companies and has delivered top quartile performance over an extended period.
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Clairvest Group Inc.
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