Global private equity and venture capital news and research

Francisco Partners eyes GSX refinancing ahead of IPO

5 Jul 2013

network5_lrgFrancisco Partners is planning a refinancing of portfolio company GSX ahead of listing the business on the public markets, it has emerged.

The private equity firm is the majority owner of the e-commerce services business, with minority positions held by Golden Gate Capital, Cerberus Capital Management and Norwest Venture Partners, Reuters said.

It reported a statement from Francisco Partners which said, “We are planning a refinancing of GXS and a subsequent IPO.

“We carried out a market check with JPMorgan Chase & Co and although the valuations we received were reasonable, we did not think they were compelling for us to sell GXS at this moment.”

It also cited three people familiar with the matter as saying the company had previously been marketed to other private equity firms which offered more than $1bn, but bidders failed to meet Francisco Partners’ expectations.

Francisco Partners bought into the business from General Electric through its debut $2.5bn fund raised in 2002. It has since had to extend the ten-year term on the fund, but has stopped charging management fees.

The fund was tracking at a 4.93 per cent net IRR and 1.3 times cash multiple at the turn of the year according to data from investor the Washington State Investment Board.

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