Mid-Market Exit of the Year
ECI Partners (Content + Cloud)
Following a period of fantastic growth, in December 2021 ECI sold Content+Cloud to Advania a leading IT-provider in the Nordics, generating a return of 4.1x gross MOIC and IRR of 32%.
When ECI first invested the business was called IT Lab and ECI worked with management to transition its positioning and substance from a generalist MSP targeting SMEs to becoming the UK’s foremost Microsoft Partner, with a depth and breadth of capability across Microsoft’s three cloud environment. This included mapping 600+ potential acquisitions, providing additional funding to support the M&A strategy and outreach and support on execution, resulting in C+C completing six acquisitions during ECI’s investment.
Peter Sweetbaum, CEO, commented: “The impact of the acquisitions on our growth was transformational. What we were able to acquire was really unique capability, at the right price with the right organisations that made a difference to the overall growth trajectory and the outcome.” The business grew from 300 people to an 800+ strong team, rebranded as Content+Cloud to align the Group under one brand representing its high-value proposition. The business is now the foundation of Advania’s UK presence, together building a true pan - European leader in technology services and solutions.
Inflexion Private Equity (Halo)
Inflexion created Halo in 2017 with the buyout of UK business ProLabs in mid-2017 and its transformational acquisition of AddOn Computer Peripherals in the US less than six months later.
In addition to the original acquisition of AddOn, Inflexion supported further M&A including Skylane Optics and Solid Optics to expand Halo’s geographic coverage into the Benelux and Latin America and Aria Technologies in the US to expand Halo's product offering into optical cabling. These were all sourced, negotiated and executed by Inflexion.
Our in-country experts in India and Brazil also supported organic international expansion in those countries, with the Indian office introducing Halo to the country's number one telecommunications company, delivering more than $10 million of revenue to the business, and Inflexion’s in-country expert in China helping Halo to build and develop strong relationships with core suppliers.
During Inflexion’s investment, profits increased 10x. In 2021 Inflexion sold Halo to Amphenol Corporation for $715m, generating a 6.1x money multiple.
MML Capital (Waystone)
In 2019, MML identified a significant market opportunity to back Waystone’s extremely talented and hungry management team to disrupt the nascent European fund services market. MML’s partnership investment philosophy resonated strongly with management and enabled MML to unlock the deal.
Over the course of the 30-month investment, MML helped execute two transformational mergers and seven smaller strategic acquisitions across Luxembourg, Ireland, the UK, Switzerland, the Middle East and Asia. This M&A activity, alongside 40% organic growth, new product launches, investment into market leading proprietary technology, and robust integration helped the business become the standout institutional global player in fund services. Waystone quadrupled its revenue and grew EBITDA six-fold whilst also making significant investment into an operational centre of excellence in Ireland and tripling headcount to 500 people.
MML exited in January 2022 via a secondary buyout led by Montagu Private Equity and Hg Capital delivering an 11x / 164% IRR return. Waystone is one of MML’s largest and most successful investments and returned 100% of MML Partnership Capital Fund VI in a single deal. The transaction is a blueprint for MML’s partnership philosophy, supporting rapid transformational growth, and playing an integral role in the creation of a billion-dollar “Unicorn” company.
Voting is now closed
To find out who won book a table at the British Private Equity Awards on 04 October 2022 by contacting Chris Coe.