LDC exits Maidenhead-based Eque2 in £46.5 million deal following three-year partnership
Private equity firm WestBridge has backed the senior management team at Maidenhead-based construction software company Eque2 to acquire the business from its existing shareholders.
The transaction provides an exit for private equity company LDC, which backed a £16 million secondary buyout with a minority investment in November 2017, and the current institutional shareholders.
Funds managed by WestBridge have invested around £29 million for a 75% stake in the business.
The buyout was led by Justin Moule (CEO) and Peter Davidson (COO), supported by Andy Bones (finance director), Richard Boston (marketing director) and Dominic Imrie (development director), who have led the business for many years.
Eque2 supplies business management software to more than 2,700 customers in the construction, housebuilding and contracting industries. Revenues have grown significantly over the last four years and it has proven to be exceptionally resilient during the Covid pandemic. The company continues to invest significantly in customer service and product development to allow customers to further integrate and mobilise the commercial and financial aspects of their business to drive efficiencies and ultimately improve profitability.
During its partnership with LDC, Eque2 made three acquisitions: Miracle Dynamics, JNC Solutions and CliP IT Solutions. It also developed the first cloud-based job costing system in the construction industry. Between 2017 and 2020, the business increased revenues by 29 per cent, EBITDA by 85 per cent and headcount by 53 per cent.
Peter Barkley, investment director at WestBridge, said: “Eque2 is a very attractive business. The management team is experienced with a proven track record and the company operates in a resilient market that is expected to grow strongly over the next few years as the UK emerges from the economic impact of Covid and Brexit.
“Added to which, Justin and the team have created a business with an excellent set of products, an unwavering commitment to addressing the needs of its customers, a strong sales and marketing team, established recurring income, high customer satisfaction and a clear roadmap to achieve future growth.
“We are delighted to have been chosen to partner with this top quality, dynamic team as it continues to develop its leading construction sector software.”
The WestBridge transaction team comprised Peter Barkley, James MacLeay, Rebecca Sinclair, Guy Davies, Valerie Kendall and Katherine Bond.
WestBridge managing partner Guy Davies, added: “This is our sixth investment from WestBridge II. We are delighted that we have the opportunity to partner with Eque2 as they continue to develop the business and would like to thank Justin and the team for selecting us.”
John Clarke, investment director at LDC, added: “The team at Eque2 has driven real growth in their business through acquisition and investment in new product development. We’re proud to have supported them and wish them all the very best for the future.”
