Alantra advises on acquisition of Cubiks by US-based PSI

UK-headquartered Cubiks has been acquired by PSI Services, one of the globe’s largest provider of talent assessment solutions.

Delivering 15 million tests & assessments per year globally from 14 different brands, US-headquartered PSI Services is a leader in assessment and talent management solutions, serving both the public and private sector. The company, founded 70 years ago, works with some 2,000 experts in 160 countries.

Much of PSI’s growth has been grounded on a buy and build strategy, with the latest bolt-on – that of Guildford-headquartered Cubiks Group – adding a network of more than 1,000 clients across the globe to its roster. Founded in 2000, Cubiks designs and delivers technology-led solutions for assessing and developing talent, building on business, psychology and online design skills.

As part of the integration, Cubiks’ offices in 13 countries across Europe and Asia Pacific will join PSI Services. The firm’s 6-strong executive leadership team – Martin Smith (CEO), Tiia Tomband (CFO), David Lawton (CTO), Dimmy van Zanten (COO), Jouko van Aggelen (CSO) and Nick Parfitt (CCO) – and its employees will make the transfer.

According to Smith, PSI will enable Cubiks to take its solutions to a wider audience and accelerate growth. “We've been seeking a partner who really understands our market and is committed to invest in growth. With PSI, we’ve found that,” he said. 

“Our businesses complement each other perfectly across market offerings and geographic footprint, and we share a similar culture – making this a great opportunity for our employees and clients.” 

Smith and his leadership team were advised on the sale by M&A advisors (Richard Holden, Robert Young, Joshua Jones and Oliver Demaine) from Alantra, the same corporate finance firm that in late 2017 advised on the management buy-out of YSC Consulting, a London-based leadership consulting and assessment business.

Holden commented: “We are pleased to have advised Cubiks on its sale to US-based PSI. The deal underlines the continued momentum in the tech-enabled consultancy space, particularly for those looking to broaden and internationalise their service offering, and positions Cubiks for continued growth with private equity backed PSI as an investment partner.”

For PSI, the acquisition is all about “investment and growth in the global talent management space,” said the firm’s CEO Steve Tapp. “Cubiks gives us an enhanced presence around the world that will, at a stroke, dramatically extend our market reach and provide the platform for further expansion.”