PE firm Cinven to acquire patent management firm CPA Global for $1.46 bn

UK-based private equity firm Cinven is buying CPA Global, one of the world's largest patent management companies, from Intermediate Capital Group (ICG), for £950 million ($1.46 billion), the Daily Telegraph reported today.

London-based Cinven bought CPA Global after beating rival BC Partners in a fiercely contested auction that saw the asking price for the patent management firm shoot up by almost £300 million from original estimates, according to the Telegraph.

Several other private equity firms, including Carlyle Group, Kohlberg Kravis Roberts & Co and Advent International, had shown initial interest but decided to walk away.

Investment firm ICG had, in January 2010, acquired a significant minority stake in CPA Global, investing alongside with the company's senior management and some of its founders, for £440 million. In December, ICG put the business up for sale, hoping to rake in around £700 million.

Founded in Jersey, Channel Islands in 1969, to originally manage patent renewals, CPA Global has expanded over the years to become a multinational company and is currently the market leader in the global intellectual property (IP) services market and one of the world's leading providers of broader legal services outsourcing, including litigation support, document review and contract management.

CPA Global has 15 offices in ten countries, including key city such as London, Paris, Munich, Washington DC, Sydney, Hong Kong and New Delhi. The company has a large and diverse list of clients, from major global corporations to small and medium-sized enterprises and innovation start-ups; and from the top international law firms to national and regional law and IP firms.
 
Most of its clients are large Fortune 500 and FTSE companies operating in chemical engineering, pharmaceuticals, technology and telecoms, most of whom hold valuable patents.

CPA Global is said to renew more than 1.5 million patents for its clients every year.
 
Last year, CPA Global acquired Malmo, Sweden-based Ipendo, a leading international IP management software and service provider, from Europe's leading IP consultancy firm Zacco Group.

This deal came after CPA Global acquired the renowned patent research division of Germany's SVPG, which specialises in the pharmaceutical, chemical, biotech and life sciences sectors, in 2008.
 
The acquisition strengthened the company's presence and client base in the German market and provided it with a platform for further growth of its patent research business in Europe.
In 2009, it landed one of its biggest deal, when it bagged a contract to supply legal services outsourcing to Anglo-Australian mining giant Rio Tinto.