Private equity firm WestBridge has backed the senior management team at construction software company Eque2 to acquire the business from its existing shareholders, by investing £29m in the £46.5m deal. The transaction, led by a five-strong management team, provided a full exit for LDC.
Capital Law’s corporate team (led by Tom Kelleher and with Philip Barratt, Gareth Williams-Davies, Catherine Golledge, Ellie Shanahan and Hakeem Din) advised the WestBridge team (with Peter Barkley, James MacLeay, Rebecca Sinclair, Guy Davies, Valerie Kendall, and Katherine Bond) on this investment – their largest so far. It is the sixth from the Westbridge II fund, and the 12th management buy-out that we have advised WestBridge on.
The investment gives WestBridge a 75% stake in Eque2, which supplies business management software to more than 2,700 customers in the construction, housebuilding and contracting industries. Revenues have grown significantly over the last four years and it has proven to be exceptionally resilient during the Covid pandemic.
Guy Davies, Managing Partner at WestBridge, said:
This transaction was a milestone deal for Westbridge completed to a very tight timescale with many complexities. As ever the Capital team rose to the challenge of this full blooded mid-market deal, were an integral part of our team and delivered when it counted. We are delighted with the support received which was a key element of making this transaction possible.
Tom Kelleher, who leads Capital Law’s corporate team, said:
This acquisition is another major milestone for the WestBridge team, not only in terms of size but also because they delivered it in what continues to be challenging times and an incredibly competitive market. The whole WestBridge team, led by Pete Barkley, demonstrated why they are a great partner for management teams on these types of deals – commercial and pragmatic, working collaboratively with management to make the deal work. Eque2, with its strong and ambitious management team and WestBridge’s backing, experience and expertise, is a business worth watching as it will no doubt continue to go from strength to strength.