HgCapital announced this week that it has sold SHL, the UK talent-testing company, to The Corporate Executive Board Company (EXBD) for $660 million. Sales Professionals will know both these businesses from Sales Pcychometrics with SHL and the famous ‘Challenger Sales Model’ launched last year by Corporate Executive Board's Sales Executive Council.
HgCapital took SHL private in a buyout worth $187 million in 2006 and subsequently merged it with Previsor, a U.S. based competitor, in January 2011. The sale nets HgCapital over three times the cash it put into its original acquisition and represents a gross return of 26% for the private equity firm's investors.
SHL provides testing for companies worldwide and counts blue-chip corporations including Barclays PLC (BCS), Coca Cola Co. (K)) and Hilton Worldwide among its clients. The company delivers around 25 million talent assessments annually in over 30 languages. It had revenue of more than $200 million last year.
"SHL is a very high quality business, recognized in its industry as the clear global leader," said Lisa Stone, a Partner in HgCapital's Portfolio Management team.
"The management team has done a tremendous job in growing and developing the business and I am delighted that SHL is finding a new home with CEB where it has a strong strategic fit," Ms. Stone added.
CEB's client and member network includes 85% of the Fortune 500, 50% of the Dow Jones Asian Titans, and 70% of the FTSE 100. It spans more than 50 countries, 5,700 individual organizations, and 225,000 business professionals.