Warburg Pincus has finalized the acquisition of Supplier Assessment Services from Capita plc. This strategic carve-out includes the prominent Constructionline and Acclaim portfolios, marking a significant entry for the private equity firm into the UK’s third-party risk management space. The investment thesis for the acquisition is based on the increasing criticality of supply chain risk management and the rising global requirements for stringent health, safety, and procurement standards. Warburg Pincus intends to leverage the target's existing platform and deep network to accelerate growth through product enhancement and expansion into new industry verticals. The partnership aims to capitalize on the success of the target’s multi-level accreditation products and its single-source accreditation model, which provides essential resilience to public and private sector customers. By transitioning from a corporate-owned division to a private equity-backed entity, the organization gains the financial flexibility and operational support required to scale its technology-enabled services both domestically and internationally. This transaction reflects the growing demand for mission-critical compliance solutions in highly regulated infrastructure and service industries.

SUPPLIER ASSESSMENT SERVICES, which reported an EBITDA margin of LOGIN in 2017, is valued in this transaction at an EV/EBITDA multiple of LOGIN, a level around LOGIN higher than the 11.1x average currently observed in the Business Services sector.

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