Private equity firm LDC has sold Atcore, which provides technology to the travel industry, to private equity firm Inflexion.
The exit has generated a money multiple return of over 3x for LDC after an investment period of three years.
Atcore provides reservation and e-commerce solutions for travel companies and specialist tour operators including Thomas Cook, TUI, Mark Warner and Voyages Jules Verne.
The group, which is based in Slough, designs, builds and maintains inventory, pricing, booking and distribution software through its Atcom platform, while its Tigerbay platform serves specialist travel operators.
LDC backed the £45 million management buyout of Atcore, then called Anite Travel, from its listed parent Anite Plc in May 2014.
Since then LDC has supported Atcore in launching new products Atcom Search platform and Atcom Retail Browser and acquiring Tigerbay. The business now has revenues of £26 million and has grown EBITDA to £8.2 million.
Dave Cruickshank joined the business as new CEO in 2016 while Mike Kingswood, the previous CEO, moved into a non-executive position.
Dave Cruickshank, CEO of Atcore, said: “It was important for us to firmly establish our own identity after we become an independent entity, and we have worked closely with LDC to expand into new markets and invest in our suite of products. The funding and guidance from LDC has been instrumental in seeing through what has been an incredible period of transformation and growth for the company.”
Andy Lyndon, Head of LDC in the Midlands, added: “The last three years have seen Atcore achieve strong organic growth that has been boosted by a number of milestone achievements. The acquisition of Tigerbay enabled the business to diversify and develop new products, and new senior hires provided added firepower to accelerate growth. These strategic developments have seen Atcore emerge as a leading platform provider in the industry, and the business is now well positioned to continue its growth journey in the expanding travel and tourism market.”