Providence Equity Partners has secured a bid of $1.3 billion to acquire A2Mac1 amidst a tough European financial market.
Providence Equity Partners is to acquire French automotive data firm A2Mac1 after outbidding rival bids at $1.36 billion. The owner of A2Mac1, Five Arrows Principal Investment, has been discussing the buyout with Providence after the bid trumped existing offers from big names such as EQT and TA Associates.
Providence Equity Partners
Providence’s remarkable portfolio is well-known in the financial space. One of the companies in its portfolio is KPA, a Colorado-based technology firm that provides compliance solutions to auto dealers.
Even though the European financial market has seen better days, Providence took the plunge and made a bid for A2Mac1. Providence focuses on media, education, communication, and technology, managing $32 billion of aggregate capital commitments.
A2Mac1 offers data analysis of vehicles and benchmarking services in the automotive industry. The company’s existing client base focuses on original equipment manufacturers along with tier 1 and tier 2 suppliers.
Seeing the success of A2Mac1 coupled with its existing portfolio of businesses in the automotive sector, it was easy for Providence to decide to buy the company. The amount offered by Providence is 30 times more than A2Mac1’s core earnings, which have been sitting at $50 million. Prior to the $1.3 billion deal, A2Mac1 was bought by Five Arrows Principal Investment for $200 million.
This bid is considered one of the most significant acquisitions in recent history. With recession looming at a global scale and a challenging European financial market, Providence has made a remarkable move with the $1.3 billion acquisition of A2Mac1. Time will tell how Providence can help A2Mac1 improve its existing processes and further extend its business value in the coming years.