ARX Equity Partners (ARX) has successfully completed the exit of its investment in Fincentrum, an independent financial advisory business operating in the Czech Republic and Slovakia respectively.
Fincentrum facilitates the sale of mortgages, life insurance and investment products and boasts more than 3,000 financial advisors and a turnover in excess of EUR60 million. It ranks as the largest, independent distribution partner, primarily for banks and insurance companies, in the Czech and Slovak markets.
The ARX exit was finalised via a 100 per cent sale to the Swiss Life Group, a European provider of comprehensive life, pension and financial solutions. This acquisition strengthens Swiss Life’s presence in the region and positions the company as a clear market leader for independent financial advice in the Czech Republic and Slovakia.
Michal Aron, Partner at ARX, says: “We are pleased that the achievements of Fincentrum over the past few years have positioned the company as an attractive acquisition target for a blue-chip strategic acquirer* such as Swiss Life. Fincentrum has excellent long-term growth and development prospects and we believe that Swiss Life will be an ideal driver for the business going forward.”
Financial details of the transaction have not been disclosed.
The divestment of Fincentrum to the publicly listed Swiss Life represents the third exit from the ARX Czech portfolio over the past 12 months to major internationally listed strategic acquirers. This series of successful exits was initiated by the sale of ARX portfolio company KVK Holding to Swiss listed Sika in Q4 2017 and was followed by the exit of VUES to NYSE listed Moog in Q2 2018.
Brian Wardrop, Managing Partner at ARX, says: “The ARX exits achieved over the past 12 months are evidence of both the attractiveness of the Czech lower mid-cap market and the ARX investment focus as a whole. These transactions reaffirm that acquiring, developing and positioning lower mid-cap companies for exits to international strategic investors is a viable strategy for CEE.”