Small Buyout Exit of the Year
August Equity (Agilio Software)
August Equity invested in Agilio Software in November 2019, and grew the business to a market-leading, healthcare operations software provider before exiting to TA Associates and Five Arrows in February 2024, generating a return of 9.2x to August’s investors.
The investment epitomises August’s ability to identify the opportunity and potential in a small, founder-run business and provide investment, support and vision to grow it into a pan-European, market leading asset in its field.
With an experienced management team led by Sati Sian, through both organic development of new functionality, and the acquisition and integration of several complementary best-of-breed solutions, Agilio developed from a dental compliance tool to a suite of versatile software solutions serving the needs of clinicians, practices and large groups of frontline healthcare settings, across the UK, Ireland and Netherlands.
Agilio effectively created the market in which it operates, often replacing manual, excel based processes with a fully integrated suite operational and compliance workflow solutions, driving efficiencies, improving user experience and enhancing day-to-day interactions within a range of healthcare verticals. The success of the exit in a competitive process amidst a challenging market backdrop in 2023 demonstrates the quality, continued growth potential and scarcity value of the investment.
Inflexion (Automotive Transformation Group)
In May 2024, Inflexion completed the sale of Automotive Transformation Group (ATG), an innovative provider of automotive retailing solutions, to Keyloop, a global automotive technology company, generating a 6.8x gross multiple and 39% gross IRR. The five-year partnership saw significant M&A, tech enhancement and international expansion.
Inflexion initially invested in Autofutura in 2019 and subsequently drove the transformational merger with GForces in 2020, followed by the acquisitions of Chrysalis and Salesmaster in 2021. The enlarged group rebranded as ATG and Inflexion supported the integration and global roll-out of its technology to deliver the first truly omnichannel retail solution for the automotive industry. During the investment, Inflexion supported an international roll-out strategy across Europe and the Middle East, resulting in international revenue mix increasing to 40%, up from zero at entry. Inflexion also strengthened and professionalised the management and engineering teams for the next stage of growth.
Headquartered in Kent, ATG’s technology offering is chosen by automotive retailers, OEMs, financiers and fleet suppliers in over 80 countries to help make the car buying experience easier. The company’s 330 employees serve many large, multinational customers including Mercedes Benz, Jaguar Land Rover, Ford Credit, and Marshall Group.
Kester Capital (Atec)
Kester Capital first backed Atec as a successful but small online insurance broker operating in niche areas within the leisure, household and commercial markets. The business lacked scale, a strategy and was unable to take advantage of its data, technology, product development and distribution channels.
Kester Capital saw a clear opportunity to build a market-leading, data and technology led, insurance distribution platform focused on specialist insurance products within the UK personal lines market. Following the investment in Sep-17, Kester built out Atec’s management team, developed its technology and data platform, broadened its product and distribution footprint, and deepened its insurer relationships.
Driven by professionalisation, operational improvement, well-executed strategic initiatives (including the establishment of an MGA) and strong organic growth, revenue and EBITDA more than tripled under Kester’s ownership. Gross Written Premiums (GWP) also grew from under £25m to over £75m by exit, supported by growth in policy volumes from 125k to 345k.
In Jun-24, a definitive agreement was signed to sell Atec to Perwyn (returns undisclosed). The sale represented Kester’s fourth consecutive exit over 4x and the eighth consecutive exit over 3x. [Note it was agreed that its ROI and the EV would not be made public].
Synova (InsurEvo)
Synova identified travel insurance data specialist, InsurEvo (formerly AllClear) in 2015 following a thematic review of businesses that benefitted from an ageing demographic. Synova was able to agree an exclusive off-market transaction, completing the transaction in December 2017.
Synova supported InsurEvo through a period of transformational growth focusing on professionalising the Group to drive further operational efficiency, increase customer lifetime value, optimise pricing and establish the building blocks for growth. This was achieved through Synova appointing a new CEO and Chairman, alongside a CFO to lead back office professionalisation, a Managing Director of Insurance and a Head of Pricing.
InsurEvo completed the acquisition of InsureandGo (‘IGO’), the UK’s largest UK travel insurance brand, in 2021 from Spanish parent, Mapfre, bringing together two of the strongest brands in the travel insurance sector making the combined brand the clear market leader in the UK travel insurance sector.
Revenue and EBITDA grew by 442% and 507% respectively since Synova’s investment with headcount growing by 244%.
The exit to Carlyle backed, NSM Insurance, generated a return of 7.3x for Synova.
Voting Closed
To find out who won, book a table at the Mergermarket British Private Equity Awards on 01 October 2024, by contacting Chris Coe.