One Equity Partners to earn 3x on ANX exit

  • Firm purchased cloud-based service company in 2006
  • One Equity made $35 mln initial investment
  • OpenText paying $100 million for Michigan company

One Equity Partners will earn a 3x return on the sale of ANXeBusiness Corp to publicly traded OpenText for $100 million, after a 10-year hold period and several add-on deals, according to a source.

The return doesn’t include the potential gain One Equity may get from its majority stake in NuArx, a spinoff from ANXeBusiness, as part of the deal. NuArx is a payment-card-security specialist.

After paying about $35 million to buy ANXeBusiness in 2006, One Equity worked with the company on five add-on acquisitions.

One Equity Partners repositioned the Southfield, Michigan, company as a cloud-based service provider of secure transactions within the automotive, healthcare and retail sectors.

Waterloo, Ontario-based OpenText , a provider of business information management software, said ANX will broaden its offerings in the automotive and healthcare sectors. The deal is expected to close in its fourth quarter of fiscal 2016.

Founded in 2001, One Equity Partners spun out from J.P. Morgan Chase & Co in 2015 under the legal name of OEP Capital Advisors. In January, the firm disclosed $600 million in commitments for OEP VI, a private equity fund.

President Richard Cashin heads One Equity, which is based in New York.

The firm was originally the private investment arm of Bank One Corp and became a unit of J.P. Morgan in 2004 when Bank One merged with JPMorgan.

OEP manages retained portfolio company investments for JPMorgan as well as a portfolio sold to Lexington Partners, AlpInvest and Blackstone Group.

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