**Cinven and Mubadala Secure $700 Million Loan from UBS to Finance UAX Acquisition**

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October 29, 2025

London, United Kingdom – Cinven and Mubadala Investment Company have officially taken ownership of Alfonso X el Sabio university (UAX) from CVC Capital Partners. The transaction, finalized at the end of last week, involved a ample financing package led by UBS.

The Deal Details

The acquisition of the private educational institution, founded by Jesus nunez, was financed through a 700 million euro loan provided by UBS. The total enterprise value of the deal is estimated to be around 2 billion euros, slightly below the 2.2 billion euro figure initially sought by CVC Capital Partners.

A Profitable Exit for CVC

This transaction represents a notable return for CVC Capital Partners, wich first invested in UAX in 2019 at a valuation of under 1 billion euros, including debt. The current deal showcases the growth and increased value of the university under CVC’s stewardship.

Financing and Advisory Roles

Santander Bank and Société Générale previously provided financing to CVC for the initial acquisition. however, UBS has now assumed the primary lending risk through a syndicated loan structure. Goldman Sachs, alongside Lazard, served as advisors to Cinven and Mubadala, while Rothschild advised CVC, with legal counsel provided by Perez llorca.

UAX Financial Performance

Currently,Alfonso X el Sabio University generates approximately 250 million euros in annual revenue,with an EBITDA (earnings before interest,taxes,depreciation and amortization) of around 115 million euros. Fiscal year 2023/2024 saw a revenue increase of 11% to 213 million euros, and EBITDA rose by 9% to 91 million euros, according to recent financial reports.

Growing Investment in Private Education

This acquisition is part of a broader trend of increasing investment in the private education sector by financial firms. Private equity groups are recognizing the potential for strong returns in this growing market. valuations in the sector are currently high, often ranging from 13 to 14 times EBITDA, and sometimes exceeding 20 times.

recent Transactions in the Education Sector

Recent deals include Nivel Global’s valuation reaching 14.5 billion dollars with the support of EQT and Neuberger Berman. CVC Capital Partners recently completed the purchase of International Schools Partnership (ISP) for 7 billion dollars. In Spain,Jacobs Holding acquired Ilerna for 400 million euros,Swiss Life bought Educare schools for 200 million euros,and Sofina and Portobello invested up to 1.8 billion euros in Proeducate Higher.

Company	Transaction	Value	Date
Cinven & Mubadala	acquisition of UAX	~€2 Billion	October 2025
CVC capital Partners	Sale of UAX	~€2 Billion	october 2025
Nivel Global	EQT & Neuberger Berman Investment	$14.5 Billion	Recent
CVC Capital Partners	Acquisition of ISP	$7 Billion	October 2025

The Rise of Private Equity in Education: A Long-Term Trend

The increasing involvement of private equity in the education sector reflects a broader shift towards market-based solutions in education. As governments grapple with funding challenges and evolving educational needs,private institutions are increasingly seen as a viable choice.This trend is expected to continue,with further consolidation and investment in innovative educational models. Did You Know? The global private education market is projected to reach $400 billion by 2026, according to market research firm HolonIQ.

Pro Tip: Investors should carefully examine the regulatory landscape and potential risks associated with education investments, including changing government policies and evolving student demographics.

Frequently Asked Questions About the UAX Acquisition

• What is the primary reason for the UAX acquisition? The acquisition reflects growing investor interest in the private education sector and the potential for strong returns.
• How was the UAX acquisition financed? The acquisition was financed through a 700 million euro loan provided by UBS.
• Who were the key advisors in the UAX deal? Goldman sachs and Lazard advised Cinven and Mubadala, while Rothschild advised CVC.
• What is the current financial performance of UAX? UAX generates approximately 250 million euros in annual revenue with an EBITDA of around 115 million euros.
• what does this acquisition signify for the future of private education investments? It signals a continued trend of increased investment and consolidation in the private education sector.
• What role did CVC Capital Partners play in the success of UAX? CVC Capital Partners invested in UAX in 2019, contributing to its growth and increased valuation.

What are your thoughts on the growing role of private equity in the education sector? Share your opinions in the comments below!

What are the key covenants associated with the $700 million loan from UBS?

Deal Overview: Funding the UAX Takeover

Private equity firms Cinven and Mubadala Investment Company have successfully secured a $700 million loan from UBS to facilitate thier acquisition of UAX, a Spanish digital conversion and IT services provider. This significant financing deal underscores investor confidence in UAX’s growth potential and the broader European IT services market. The loan, structured as a term loan, will be instrumental in completing the transaction, expected to close in late 2025. This acquisition represents a major move in the consolidation of the IT services sector, especially within the Spanish and wider European landscape. Key terms of the loan include standard covenants for leveraged buyouts, focusing on debt service coverage ratios and limitations on further indebtedness.

Key Players in the Transaction

* Cinven: A leading international private equity firm focused on strategic investments in European and North American companies. Cinven’s portfolio spans various sectors, including business services, healthcare, and consumer goods. Their expertise in scaling technology-driven businesses was a crucial factor in securing the UAX deal.

* Mubadala Investment company: A sovereign wealth fund owned by the Emirate of Abu Dhabi. Mubadala invests globally across a diverse range of asset classes, including private equity, real estate, and infrastructure. Their long-term investment horizon aligns well with cinven’s strategy for UAX.

* UBS: The Swiss multinational investment bank acted as the sole lead arranger for the $700 million loan.UBS’s extensive experience in financing leveraged buyouts and its strong relationships with institutional investors were vital to the deal’s success.

* UAX: A prominent Spanish IT services company specializing in digital transformation, cloud solutions, and cybersecurity. UAX serves a diverse client base across various industries, including financial services, telecommunications, and the public sector.

The UAX Acquisition: Strategic Rationale and Market Position

The acquisition of UAX by cinven and Mubadala is driven by several strategic factors:

* Growing Demand for Digital Transformation: Businesses across Europe are increasingly investing in digital transformation initiatives, creating a robust market for IT services providers like UAX.

* strong Market Position in Spain: UAX holds a leading position in the Spanish IT services market, offering a strong platform for growth and expansion.

* Scalability and Synergies: Cinven and Mubadala believe UAX has significant potential for scalability and synergies, particularly through cross-selling opportunities and geographic expansion.

* Fragmented Market: The European IT services market remains fragmented, presenting opportunities for consolidation and value creation.

Loan details and Financial Implications

The $700 million loan from UBS is a critical component of the financing structure for the UAX acquisition. Here’s a breakdown of key details:

* Loan Type: Term Loan B

* interest Rate: Floating rate, benchmarked to Euribor plus a margin. (Specific margin details are confidential but are typical for leveraged buyouts of this size.)

* Tenor: 7 years

* Use of Proceeds: primarily to finance the acquisition of UAX and cover associated transaction costs.

* Debt-to-EBITDA Ratio: The transaction is expected to result in a leverage ratio of approximately 4.5x UAX’s EBITDA, which is considered manageable given the company’s strong cash flow generation.

Impact on the IT Services Sector

This deal is expected to have several implications for the broader IT services sector:

* Increased Consolidation: The UAX acquisition is likely to spur further consolidation activity in the European IT services market, as private equity firms seek to capitalize on the growth opportunities.

* Higher Valuations: Accomplished transactions like this tend to drive up valuations for IT services companies, making it more expensive for potential acquirers.

* Focus on Specialization: Companies with specialized expertise in high-growth areas like cloud computing, cybersecurity, and data analytics are likely to attract premium valuations.

* Investment in Innovation: the influx of private equity capital into UAX is expected to accelerate the company’s investment in innovation and new technologies.

Previous Similar Transactions & Case Studies

Several recent transactions demonstrate the ongoing trend of private equity investment in the IT services sector:

* **Thoma Bravo