Update regarding Thoughtworks

Apax Global Alpha Limited

12 August 2024

 

Apax Global Alpha

Update regarding Thoughtworks

Further to the announcement made on 6 August 2024 about the Apax Funds' intention to take private Thoughtworks, a portfolio company in the Apax IX Fund ("Apax IX") in which Apax Global Alpha Limited ("AGA") is a limited partner, AGA has received an update from the Apax Funds on the investment.

As part of the transaction, Apax XI and co-investors will purchase all the outstanding shares in Thoughtworks, whilst Apax IX, alongside related co-investors, will roll its entire stake in the company. The purchase price values AGA's total look-through investment in Thoughtworks at c.€54m (c.€27m via Apax IX and c.€27m via Apax XI).

Note that these figures relate to AGA's look-through positions via Apax IX and Apax XI and are stated before taking into account any closing adjustments, fees, costs, holdco facilities and carried interest, and are translated based on the latest exchange rates available where applicable¹. The transaction is expected to close in Q4 2024, subject to customary closing conditions.

Total proceeds received by AGA to date from Apax IX's investment in Thoughtworks stand at c.€73m.

Thoughtworks is a global technology consultancy that integrates strategy, design, and engineering to drive digital innovation. Founded in 1993, Thoughtworks helps clients solve complex business problems with technology as the differentiator.

Thoughtworks has a reputation for excellence thanks to its technical talent and high-end project-based offering. The investment thesis is to invest in a highly differentiated business that Apax knows well and that operates in a market with long-term growth potential and to accelerate the company's transformation under private ownership where many of the necessary operational enhancements needed can be implemented more effectively.

The transaction also draws on the Apax Funds' strong track record investing in the tech-enabled services subsector, deploying over $5.3bn of equity in 21 deals in the last 18 years.

AGA, whose shares are listed on the London Stock Exchange, provides investors with access to a diversified portfolio of private equity funds advised by Apax Partners as well as a smaller portfolio of primarily debt investments. In 2016, AGA made a commitment of c.$350m² to Apax IX and in June 2022, AGA made a commitment of c.$700m³ to Apax XI.

A further update will be provided as part of AGA's H1 2024 results which will be published on 5 September. 

END

Contact details

Investor Relations - AGA

Katarina Sallerfors

T: [phone]

E: [e-mail]

Footnotes

1.	Based on Bloomberg closing EUR/USD FX rate on 2 August 2024 of $1.0911
2.	AGA's commitment in Apax IX of €154.5m in Apax IX euro tranche and $175.0m in Apax IX USD tranche.
3.	AGA's commitment in Apax XI of c.$700m represents a commitment of $490m in the USD tranche and €198.4.m in the euro tranche.

Notes

1.	Note that references in this announcement to Apax Global Alpha Limited have been abbreviated to "AGA" or "the Company". References to Apax Partners LLP have been abbreviated to "Apax" or "the Investment Adviser"
2.	Please be advised that this announcement may contain inside information as stipulated under the Market Abuse Regulations (EU) NO. 596/2014 ("MAR")
3.	This announcement is not for release, publication or distribution, directly or indirectly, in whole or in part, into or within the United States or to "US persons" (as defined in Regulation S under the United States Securities Act of 1933, as amended (the "Securities Act")) or into or within Australia, Canada, South Africa or Japan. Recipients of this announcement in jurisdictions outside the UK should inform themselves about and observe any applicable legal requirements in their jurisdictions. In particular, the distribution of the announcement may be restricted by law in certain jurisdictions
4.	The information presented herein is not an offer for sale within the United States of any equity shares or other securities of Apax Global Alpha Limited ("AGA"). AGA has not been and will not be registered under the US Investment Company Act of 1940, as amended (the "Investment Company Act"). In addition, AGA's shares (the "Shares") have not been and will not be registered under the Securities Act or any other applicable law of the United States. Consequently, the Shares may not be offered or sold or otherwise transferred within the United States, or to, or for the account or benefit of, US Persons, except pursuant to an exemption from the registration requirements of the Securities Act and under circumstances which will not require AGA to register under the Investment Company Act. No public offering of the Shares is being made in the United States
5.	This announcement may include forward-looking statements. The words "expect", "anticipate", "intends", "plan", "estimate", "aim", "forecast", "project" and similar expressions (or their negative) identify certain of these forward-looking statements. These forward-looking statements are statements regarding AGA's intentions, beliefs or current expectations concerning, among other things, AGA's results of operations, financial condition, liquidity, prospects, growth and strategies. The forward-looking statements in this presentation are based on numerous assumptions regarding AGA's present and future business strategies and the environment in which AGA will operate in the future. Forward-looking statements involve inherent known and unknown risks, uncertainties and contingencies because they relate to events and depend on circumstances that may or may not occur in the future and may cause the actual results, performance or achievements of AGA to be materially different from those expressed or implied by such forward looking statements. Many of these risks and uncertainties relate to factors that are beyond AGA's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behaviour of other market participants, the actions of regulators and other factors such as AGA's ability to continue to obtain financing to meet its liquidity needs, changes in the political, social and regulatory framework in which AGA operates or in economic or technological trends or conditions. Past performance should not be taken as an indication or guarantee of future results, and no representation or warranty, express or implied, is made regarding future performance. AGA expressly disclaims any obligation or undertaking to release any updates or revisions to these forward-looking statements to reflect any change in AGA's expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based after the date of this announcement, or to update or to keep current any other information contained in this announcement. Accordingly, undue reliance should not be placed on the forward-looking statements, which speak only as of the date of this announcement.

About Apax Global Alpha Limited

AGA is a Guernsey registered closed-ended investment Company listed on the London Stock Exchange. It is regulated by the Guernsey Financial Services Commission.

AGA's objective is to provide shareholders with capital appreciation from its investment portfolio and regular dividends. The Company is targeting an annualised Total Return, across economic cycles, of 12-15% (net of fees and expenses).

The Company makes Private Equity investments in Apax Funds, and has a portfolio of primarily Debt Investments, derived from the insights gained via Apax's Private Equity activities.

Further information regarding the Company and its publications are available on the Company's website at www.apaxglobalalpha.com.

About Apax

Apax Partners LLP ("Apax") is a leading global private equity advisory firm. For over 50 years, Apax has worked to inspire growth and ideas that transform businesses. The firm has raised and advised funds with aggregate commitments of close to $80 billion. The Apax Funds invest in companies across four global sectors of Tech, Services, Healthcare and Internet/Consumer. These funds provide long-term equity financing to build and strengthen world-class companies. For further information about Apax, please visit www.apax.com.

Apax is authorised and regulated by the Financial Conduct Authority in the UK

 

END