GCA Altium has acted as exclusive financial adviser to Eque2, a portfolio company of LDC, on the sale of a 75% stake to private equity firm WestBridge.
This transaction follows a pair of high profile software transactions in the last quarter, with GCA Altium advising Mobysoft on its investment from ECI in September and advising Mitrefinch on its sale to Advanced in October. It also represents GCA’s 27th global property tech advisory transaction since 2017.
Established in 2012 and headquartered in Maidenhead, UK, Eque2 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.
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 deal provides a full exit for LDC, which acquired a minority stake in the company in November 2017, and other institutional shareholders.
During its partnership with LDC, Eque2 made three acquisitions: Miracle Dynamics, JNC Solutions and CliP IT Solutions. It also developed the first cloud-based job costing system in the construction industry. Between 2017 and 2020, the business increased revenues by 29%, EBITDA by 85% and headcount by 53%.
Justin Moule, CEO at Eque2, who led the MBO, said: “GCA Altium supported us fantastically well throughout every stage of this process, and I am delighted that all of their detailed planning enabled us to identify a perfect partner in WestBridge who will help us to execute on our exciting strategy for the future.”
A team at GCA Altium comprising Adrian Reed, Chris Gough, Raiko Stelten, Dominic Orsini, Gabrielle Worrall, Durgesh Panchani and Tom Shackleton, advised Eque2 on the transaction.
Reed, managing director at GCA Altium, added: “It has been a pleasure to work with Justin, Peter and the team. They have achieved great success to date and with WestBridge now as their partner I’m certain that Eque2’s impressive growth will continue.”
Vendor financial due diligence and tax was provided by Jon Cooper and Pete Stephenson at PwC, and vendor tech due diligence was provided by Intechnica. Sellside legal advice was provided Rebecca Grisewood and Adam Noble at Gateley.