Australia’s Quadrant Private Equity has signed an agreement to acquire the enterprise services division of ASX-listed Arq Group for A$35 million ($23.5 million) on a cash and debt-free basis.
According to Arq Group’s announcement, the enterprise division will be sold to an entity owned by a consortium comprising Quadrant Private Equity and certain members of the management team.
The transaction is expected to complete on 2 March 2020.
The net proceeds will be subject to adjustments for net debt items, working capital and insurance cover. This divestment will allow Arq to pare debt, focus on cost management and maximise options for its sole SMB business, the company said.
Following the transaction, Brett Fenton, who leads ARQ Group’s SMB division, will replace Tristan Sternson as ARQ’s interim CEO effective immediately.
“After engaging with numerous parties interested in acquiring the enterprise business over the past few months, we are pleased to announce the sale of the business to Quadrant,” said Andrew Reitzer, Chair of Arq Group.
Quadrant Private Equity, set up in 1996 as Quadrant Capital, focuses on investments across Australia and New Zealand.
The PE firm has so far led 71 investments in the past 10 funds (with 55 exits) across a range of sectors including retail, healthcare, media, consumer foods, financial services, and other sectors.
Last October, the Sydney-based PE firm offered to take ASX-listed outdoor advertising company QMS Media private for A$420-million ($288 million).
Earlier, Quadrant announced that it was close to acquiring a majority stake in Love To Dream, a designer of innovative baby swaddles and sleepwear, for an undisclosed amount.
Last July, the PE firm agreed to acquire GraysOnline and AreYouSelling businesses from fleet leasing and management group Eclipx Corporation for A$60 million ($42 million).