Private equity firm LDC has backed the management buyout of Eque2, which provides software to the construction and housebuilding industries.
The £16 million investment will be used to accelerate the firm’s growth strategy and buy-and-build programme, and also fund the simultaneous acquisition of the Miracle Dynamics Payroll and HR Solution, a technology firm.
Eque2 is headquartered in Manchester and supplies business management software to more than 1,400 customers in the construction, housebuilding and contracting industries. Its software enables builders, contractors, architects, engineers and estimators to integrate the commercial and financial aspects of their business, in order to drive efficiencies and ultimately improve profitability.
Under the deal LDC will take a significant minority stake in the business, providing an exit for private equity firm Livingbridge, which has backed Eque2 since 2013.
The buyout was led by executive chairman Richard Beaton, who joined Eque2 in 2013.
Richard Beaton said: “We have achieved significant growth over the last four years, but in order for us to maintain a market leading position it is vital we expand our offering further and capitalise on opportunities in different markets. With the financial firepower and support of LDC we’re confident that we can establish ourselves as the construction industry’s leading provider of specialist business management software and the Miracle Dynamics acquisition is an exciting first step on this journey.”
John Clarke, investment director at LDC, added: “Eque2 has become the leader in its field by offering exceptional solutions, the highest service standards and having an unwavering commitment to addressing the needs of its customers. For us, however, the deal is not just about the strength of the business and the market opportunity, but partnering with and supporting the management team to achieve their growth strategy.”
Bevan Duncan, investment director at Livingbridge, said: “We are very proud of the great progress that Eque2 has made since our original investment in 2013. Over the past four years, we have supported Richard Beaton and the team through a rapid period of growth which has seen them expand their presence throughout the UK, develop a new range of construction specific products and increase their market share uniquely across the sector.”