Praxis Capital Sells to BusinessOn Skylake... Triple Profit in 5 Years

Private equity firm Praxis Capital Partners is selling BusinessOn, a leading enterprise Software-as-a-Service (SaaS) provider, to Skylake Private Equity (PE) for 380 billion KRW. Praxis Capital achieved a 3.1x return on investment after 5 years.

According to the investment banking (IB) industry on the 24th, Praxis Capital and Skylake signed a stock purchase agreement (SPA) the day before for 70.5% (approximately 16.06 million shares) of Praxis Capital’s and individual shareholders’ stakes at 15,850 KRW per share, totaling 254.5 billion KRW.

The sale price is approximately 380 billion KRW based on enterprise value. The return on invested capital is 3.1 times, with an internal rate of return (IRR) of about 26%. BDA Partners provided sale advisory, while Samjong KPMG and Kim & Chang law firm provided accounting and legal advisory, respectively.

Founded in 2007, BusinessOn is the market leader in electronic tax invoice solutions and operates businesses including electronic contracts, integrated management (purchase integration), and intelligent big data services. Praxis Capital acquired a 46.91% stake in BusinessOn in 2019 for a total of 95 billion KRW at 8,789 KRW per share.