J-Star ups stake in Primagest

According to AVCJ Research, J-Star made its first investment in Primagest - formerly known as Banctec - in June, acquiring a 34.7% stake for JPY498 million ($5 million.)

Primagest develops software and hardware for image scanning and processing. It also provides business process outsourcing (BPO), chiefly using scanners and intelligent character recognition (ICR) technology to digitize clients' paper documents.

It counts private and public sector organizations among its clients, including financial institutions and local governments.

Primagest was originally a subsidiary of BancTec, a US company. It was held by US buyout firm Welsh, Carson, Anderson & Stowe, before going independent in 2002 through a $82.5 million management buyout backed by JAFCO.

Primagest then listed in 2006, but was made private again in 2009 through a second MBO, worth JPY10.2 billion, which was supported by JPY3.5 billion a mezzanine provision from Chuo Mitsui Capital.

J-Star, whose members include those who worked on the first Jafco MBO, made its investment through J-Star No. 2 - a  JPY20.4billion vehicle which reached a final close of  in July - chiefly as a succession play.

J-Star No. 1 launched in March 2006 and reached a final close of JPY12.25 billion in December the following year.

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• Topics
• North Asia
• Buyouts
• Support services
• Technology
• Japan
• J-Star
• buyout
• TMT