Target: Genex Services
Sponsor: Apax Partners
Seller: Stone Point Capital
Financial Advisers: SunTrust Robinson Humphrey, Royal Bank of Canada
Apax Partners on Monday said it has bought Genex, a Wayne, Pennsylvania-based provider of managed care services, sister website peHUB reported. Financial terms weren’t announced. but Thomson Reuters Loan Pricing Corp said the deal includes a $317.5 million credit facility. Genex said it also sold its smaller specialty network businesses to One Call Care Management, which also is backed by Apax.
The transaction has been a long time coming. Genex was up for sale in early 2012, according to Mergermarket. Bank of America advised on the process that did not result in a deal. Genex, at that time, produced about $40 million EBITDA, press reports said.
Stone Point, of Greenwich, Connecticut, invests in financial services, including banks, asset managers and insurers. The firm has been fundraising this year for Trident VI LP. The pool is seeking $4.5 billion, peHUB has reported.
The investment in Genex came from Stone Point’s fourth fund, which collected $2.25 billion in 2007. Performance data for Fund IV was unavailable.
Stone Point appears to have gotten back more than its initial investment in Genex. In March 2007, the financial services-focused firm acquired Genex from UnumProvident Corp. Financial terms weren’t announced, but it appears that Stone Point spent about $56 million for the company, according to an SEC filing from that time.
Stone Point has received at least two dividends from Genex. Last July, Genex launched a $270 million loan that it used to refinance existing debt, fund a dividend and pay for general corporate purposes, Moody’s Investors Service said. About $88 million went to pay the dividend, Moody’s said.
In 2012, Genex issued $190 million in loans that it also used to fund a dividend recap, LPC has reported.
SunTrust Robinson Humphrey and Royal Bank of Canada were co-advisers to Genex.
Executives at Genex, Apax and Stone Point could not be reached immediately for comment.
Luisa Beltran is a senior writer for peHUB.