Mid-market private equity firm Bowmark Capital is backing the buy-out of Nexus Vehicle Solutions, a B2B broker of rental vehicles in the UK, from its previous institutional investor, Livingbridge, for a total consideration of GBP51 million.
The business connects vehicle rental companies with corporate customers via a proprietary online booking and rental management system that automates and streamlines the procurement process.
Founded in Leeds in 1999, Nexus provides its 800 customers with access to over 500,000 vehicles sourced from 130 rental companies operating from more than 2,000 locations. For rental companies, Nexus provides valuable incremental volumes that are otherwise difficult to access. For customers, it fulfils often complex booking requirements that may involve specialist vehicles, remote locations or short-notice supply. Rental plays an increasingly important role in the management of corporate fleets as a flexible, responsive and low-cost solution to short-term vehicle needs.
Nexus has achieved impressive growth, capitalising on its industry-leading technology, high service levels and market-leadership position. The company has twice appeared in the Sunday Times Profit Track 100, a league table of private companies with the fastest growing profit over a three-year period. Bowmark has acquired a majority shareholding in the company, alongside the current management team.
Bowmark partner Julian Masters says: “We first met the Nexus management team nearly five years ago and have been hugely impressed with their achievements over this period. The company is well positioned to continue its growth by further penetrating the corporate market and by continuing to develop its technology platform.”
David Brennan, chief executive of Nexus, says: We have built a dynamic and market-leading business with a number of exciting new opportunities for growth. We are delighted to welcome Bowmark on board and look forward to taking the business forward together. Their experience of having invested in similar online B2B businesses should prove invaluable to us.”
