CVC explores Verisure take-private one year after €13.7bn IPO
CVC Capital Partners is considering a bid to take European home security provider Verisure private just one year after rival buyout firm Hellman & Friedman (H&F) floated the business in Stockholm at a €13.7bn valuation, according to a report by the Financial Times.
CVC Capital Partners is reportedly considering a bid to take European home security firm Verisure private one year after rival Hellman & Friedman floated the business in Stockholm at a €13.7bn valuation. Verisure's shares have fallen around 30% from their IPO price, creating an acquisition opportunity for CVC. H&F remains the company's largest shareholder with approximately 44% ownership.
CVC's interest is preliminary and there is no certainty of a formal offer. Verisure, based in Switzerland, offers residential security and alarm monitoring services. The firm was founded in 1988 as part of Sweden's Securitas group before being acquired by H&F and Bain Capital from EQT in 2011 for €2.3bn. H&F acquired Bain's stake in 2015.
The potential transaction underscores the difficulties private equity-backed IPOs face, with high interest rates and market volatility affecting valuations and limiting exit opportunities. Other recent listed portfolio companies, such as HBX Group and Galderma, have underperformed or generated significant proceeds. Private equity firms are increasingly pursuing listed European businesses trading at discounted valuations, as seen in KKR's acquisition of Spectris and Permira and CPP Investments' take-private of JTC.
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