US private equity company Silver Lake will take a stake in RAC, one of the UK’s biggest breakdown assistance providers, in a deal that values the company at £3.7bn.
The California-based company, which specialises in technology investments, will buy part of the stakes held by the current owners, private equity firm CVC and the Singapore sovereign wealth fund GIC, leaving the three as roughly equal partners, with two board seats each.
It is the latest move by Silver Lake — a technology investor whose portfolio includes start-ups such as food delivery company Getir and the “buy now, pay later” group Klarna — to instead buy into a longstanding incumbent in a bid to improve its digital offering.
Source: Financial Times
By George Steer and Kaye Wiggins
