Global investment bank GCA Altium has acted as exclusive financial adviser to Mobysoft, a provider of predictive analytics software to the UK social housing market, on its minority investment from private equity house Livingbridge.
The deal represents GCA Altium’s 36th global transaction in the technology sector within the last two years (and 15th software transaction since the start of 2017), firmly positioning the business as the world’s largest tech-focused investment bank.
Mobysoft’s core product, RentSense, is a Software as a Service (SaaS) based predictive analytics tool which helps social housing landlords manage arrears collection more efficiently. Using a range of data, including historic trends, RentSense’s algorithms flag potential issues to social housing officers, saving them time, improving efficiency in rent collection and cutting arrears by tens of millions of pounds a year. Mobysoft’s software is used daily by 80 social housing operators managing circa 900,000 properties, almost a fifth of the sector’s 5.2 million UK based properties.
Growing rent arrears is an issue for the UK’s 1,650 social housing providers with the largest 100 alone facing more than GBP700 million of gross arrears in 2016. Rent reductions, welfare reform including Universal Credit and increased numbers of tenants are adding to cost pressures in the sector and driving the need for greater efficiency.
Founded in 2003 by Derek Steele, Mobysoft has a team of circa 35, headquartered in Manchester. Livingbridge’s investment will enable Mobysoft to grow UK social housing market share, expand its geographical presence, increase investment in people and roll-out its predictive analytics software into new verticals.
Commenting on the investment, Derek Steele, CEO of Mobysoft, says: “This investment is fantastic news for Mobysoft, our staff and clients. As social housing continues to grow and cost pressures increase for providers, our software helps tackle rental arrears and delivers vital cost savings. Livingbridge has strong experience in helping businesses like Mobysoft and I look forward to working with them to take us to the next stage of growth.”
A Manchester team at GCA Altium, led by managing director Adrian Reed, director Dom Orsini and analyst Matt Furness, advised the shareholders of Mobysoft on the deal. Adrian Reed commented: “We are delighted for Derek and his team. Mobysoft is an innovative business within its sector that has attracted a huge amount of interest and the deal represents a fantastic result for all involved. I’m certain that with Livingbridge’s backing, Mobysoft will go on to enjoy even greater success.”
Most recently, GCA Altium completed a USD100 million fundraise in the US for LeddarTech – a developer of sensing technology used in multiple mobility-related markets including automotive, intelligent transport systems, drones, and industrial vehicles.
