The Kempen European Private Equity Fund has backed the senior management team at construction software company Eque2 to acquire the business from its existing shareholders.
Eque2 supplies business management software to more than 2,700 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, driving efficiencies and ultimately improving profitability. 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.
The transaction values Eque2 at GBP46.5 million. Kempen co-invests in the management buyout together with its long-time UK investment partner WestBridge Capital and as a group they have a majority stake in the capital of the business, with the balance owned by the Eque2 management team. This is the seventh direct deal in the Kempen European Private Equity Fund and the second UK-focused deal for the Fund.
Sven Smeets, Managing Director Kempen Private Markets, comments: “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. We are delighted to be able to back this highly experienced management team, who we are confident will successfully steer the business to its next level of growth.”
Edzard Potgieser, Director Kempen Private Markets, adds: “together with our partner WestBridge Capital, we are looking forward to supporting and helping drive further investments and growth in the Eque2 business in the years to come.”
Guy Davies, Managing Partner at WestBridge Capital, says: “We are pleased to report that with the support of our co-investor Kempen we have successfully closed the £46.5m management buyout of construction software company Eque2. We are delighted that Kempen has chosen WestBridge as its UK private equity investment partner and that they are co-investing with us in Eque2. We look forward to working with Kempen and the Eque2 management team on this very exciting opportunity. We have worked together with Kempen for years on various other successful deals and we view the Kempen team as a partner in an alliance that offers room for professional, long term entrepreneurial investing.”
