Gresham House’s Baronsmead VCTs have exited their stake in compliance software business Ideagen following its sale to private equity firm Hg Capital.
The deal values Ideagen at £1.1 billion, making it the first Baronsmead VCTs unicorn in pound sterling at the point of exit.
The Baronsmead VCTs’ investment generated a 13.5x return at the point of exit, with Hg Capital’s take-private deal completing in July 2022.
Ideagen is a Software as a Service (SaaS) business focused on helping companies in highly regulated industries – including banking, insurance and healthcare – comply with regulation and manage governance risk. Established in 1993 and headquartered in Nottingham, the business has become a leader in the $30bn-plus regulatory and compliance software space – an attractive sector supported by long term structural growth drivers.
The Baronsmead VCTs first invested in Ideagen in December 2012 shortly after the company was admitted to the AIM market, becoming one of its largest shareholders. The investment supported the business in growing its revenue from £4 million in FY12 to more than £90 million in FY22, and increased EBITDA from break-even to more than £30 million over the same period. The Baronsmead VCTs also supported a major transition in Ideagen’s management team, with former CEO David Hornsby appointed executive chairman and subsequently non-executive chairman prior to his retirement from the board, while Ben Dorks took over as CEO in 2018.