Bosses at database management and marketing firm Valldata have bought the Melksham-based business in a deal that also involves a major technology private equity firm investing £6.5m in return for a sizeable minority stake.
Valldata chief executive Hamish Horton and Martin Kirk, its chief operating officer, who were existing shareholders in the company, led the full management buyout (MBO) from its private owners and now own about 60 per cent of the business.
Mr Horton said the MBO would allow Valldata to accelerate its strategic vision to create an integrated fundraising services-led business for the UK charity sector through organic growth and acquisitions.
“The need for the sector to continually focus on reducing administration costs combined with the market dynamics of a fragmented supply chain will enable Valldata to build a first-class group, underpinned by technology led product development and solutions,” he said.
The firm partners with charities and other organisations to help them deliver fundraising campaigns. It also provides outsourced services to more than 50 of the UK’s largest charities, including assisting the Disaster Emergency Committee.
Innovative use of the latest technology enables it to handle more than million interactions with donors each year, from paper-based donations to those made via phone and on-line services.
It processes donated funds worth more than £100 million and manages the database updates for its customers and fulfilment to the donors. Valldata has recently introduced the capability to handle integrated phone and content-managed online campaigns that are increasingly being used by its customers.
London-based ISIS’s investment, led by David Cowan and Andrew Garside and made through its Baronsmead VCTs, is its first this year. Last year the firm, which backs growing businesses in the technology enabled business services sector, delivered four new investments, five realisations and two acquisitions on behalf of its portfolio companies.
Catalyst Corporate Finance, the corporate finance firm with offices in London, Birmingham and Nottingham, acted as lead adviser on the MBO. Law firm Osborne Clark advised the management team and the vendors.
Alisdair Livingstone, head of corporate at Osborne Clarke’s Bristol office, said: “It’s good to see some private equity activity in the local market after what has been a pretty quiet 12 months. The funding will allow the management team to continue to build on Valldata’s successes.”
Catalyst was first appointed by Valldata to undertake a review of the business and, having developed a detailed understanding of the objectives of the respective shareholders, presented a proposed MBO structure which met all the key shareholder objectives.
“The new shareholder and funding structure will allow the management team to accelerate their strategic vision of delivering an integrated fundraising services-led business for the UK charity sector,” said Catalyst partner Steve Currie.
