Sovereign Capital Plans Regional Accountants Merger into Affinia
Deal News | Dec 01, 2024 | EIN
Sovereign Capital, a private equity firm, will merge seven regional professional services firms to form Affinia, as indicated by reports. These firms, predominantly accountancy businesses, span several locations, including Colchester and Ipswich, and are projected to make approximately £35 million in annual sales, with aspirations to double their size within five years. The merger comes as the professional services sector attracts significant interest from private equity players, evidenced by Apax’s £700 million acquisition of Evelyn Partners’ accounting division. Affinia, under the guidance of Darren Redmayne, aims to exploit this trend, aiming for growth through strategic acquisitions and cost optimization, such as shared IT infrastructure.
Sectors
- Private Equity
- Professional Services
- Accounting
Geography
- United Kingdom – The article's primary geographical focus is the UK, where the merging accounting firms are located, and the mergers are intended to tap into the regional accounting market.
Industry
- Private Equity – This reflects the significant role of private equity firms like Sovereign Capital and Apax in facilitating acquisitions in the professional services sector.
- Professional Services – Relevant due to the merging of several regional accountancy firms to form Affinia, highlighting the industry's ongoing transformation influenced by private equity investments.
- Accounting – Integral to the article as the focus is on merging regional accounting firms into a single entity named Affinia, under the premise of enhanced profitability and efficiency.
Financials
- 700000000 – The amount Apax Partners paid to acquire Evelyn Partners' accounting division.
- 35000000 – The expected annual sales revenue Affinia aims to generate post-merger.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Sovereign Capital | Private Equity Firm | Company | A private equity firm orchestrating the merger of regional accountancy firms into Affinia. |
| Affinia | Target Company | Company | The resulting entity from the merger of seven regional accountancy firms, aimed at growth within the UK's accounting market. |
| Apax Partners | Bidding Company | Company | A British private equity firm that recently acquired the accounting arm of Evelyn Partners for £700 million. |
| Bridgepoint | Bidding Company | Company | An alternative private equity firm that competed with Apax in acquiring Evelyn Partners' accounting unit. |
| Darren Redmayne | Leader of the Initiative at Affinia | Person | Appointed by Sovereign Capital to lead Affinia's strategic growth and merger efforts. |