Clairvest Exits KUBRA, Realizes 13.5x Return
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Clairvest Exits KUBRA, Realizes 13.5x Return

kubra nf1Clairvest Group has sold its portfolio company KUBRA Data Transfer to Hearst Corporation and has realized proceeds equal to 13.5 times its invested capital and an internal rate of return of over 40%.

KUBRA is a provider of digital bill delivery and payment services with offices across North America. The company provides services to more than 500 clients in the utility, insurance, government, financial services, healthcare and communication sectors and processes more than $350 billion in annual payments. KUBRA serves three of the five largest US utility companies and two of the top 10 insurance companies. The company is looking to expand into additional industry segments such as property and casualty insurance providers, and state and local governments. KUBRA was founded in 1992 and is based near Toronto in Mississauga, ON (www.kubra.com).

KUBRA was the first investment made by Clairvest Equity Partners III LP, a $300 million fund that began investing in 2006.  During the term of ownership, KUBRA grew to become one of the leading electronic bill presentment and payment companies in North America.

rick watkin nf1“We appreciated having Clairvest as a partner,” said Rick Watkin, President & CEO of KUBRA. “They actively supported KUBRA’s investments in growth and have been a great resource to the company.”

The Clairvest Group invests in mid-market companies, principally in North America, across a range of industries. Clairvest looks to invest from $15 million to $50 million in equity capital in companies with EBITDAs from $5 million to $40 million. Desired ownership percentages range from 20% to 80%. The firm is based in Toronto (www.clairvest.com).

During the eight year term of Clairvest’s ownership, KUBRA grew EBITDA by over 6 times. KUBRA’s growth was primarily organic, achieved through continued investment in technology and enhanced service offerings.  KUBRA’s growth was further assisted by two add-on acquisitions completed by Clairvest.  Over the past eight years, KUBRA has won several industry recognitions being named as one of Deloitte’s 50 Best Managed companies, Deloitte’s Technology Fast 50 and Fast 500 in North America, and E&Y’s Technology Entrepreneur of the Year.

michael waqgman nf1“We are very proud of KUBRA’s growth during our investment period. Rick and his team have done an outstanding job building out a technological platform that made KUBRA a leader in the Customer Interaction Management Industry. Their continued focus on innovation, investment in talent and relentless emphasis on service improvement allowed them to win some of the industry’s most coveted and sizable clients. These accomplishments made KUBRA an attractive strategic acquisition for Hearst with great future prospects,” said Michael Wagman, Managing Director at Clairvest. “KUBRA’s future is very promising and we wish this exceptional group continued success in the years to come in their partnership with Hearst,” added Mr. Wagman.

hearst nf1Hearst Corporation is one of the nation’s largest diversified media and information companies. Its major interests include ownership of 15 daily and 34 weekly newspapers, including the Houston Chronicle, San Francisco Chronicle, San Antonio Express-News and Albany Times Union; hundreds of magazines around the world, including Good Housekeeping, Cosmopolitan, ELLE and O, The Oprah Magazine; 29 television stations; ownership in leading cable networks, including Lifetime, A&E, HISTORY and ESPN; holdings in automotive, electronic and medical/pharmaceutical business information companies; a 50 percent stake in global ratings agency Fitch Group; Internet and marketing services businesses; television production; newspaper features distribution; and real estate. Hearst is headquartered in New York (www.hearst.com).

Financial Technology Partners and FTP Securities acted as exclusive strategic and financial advisors to KUBRA and its Board of Directors in this transaction.

2014 PEPD • Private Equity’s Leading News Magazine • 9-5-14

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