Mid-market private equity firm LDC, has backed the management buyout of construction, contracting and housebuilding software specialist Eque2.
The multi-million-pound investment will be used to accelerate the firm’s growth strategy and buy-and-build programme, along with funding the simultaneous acquisition of the Miracle Dynamics Payroll and HR Solution.
Headquartered in Manchester, Eque2 supplies business management software to more than 1,400 customers in construction, housebuilding and contracting. Its software enables builders, contractors, architects, engineers and estimators to integrate the commercial and financial aspects of their business to improve profitability.
The buyout was led by executive chairman Richard Beaton, who joined Eque2 in 2013 and has supported the growth of the business over the past four years.
The investment, which sees LDC take a significant minority stake in the business, will also support the immediate acquisition of the Miracle Dynamics Payroll and HR Solution. Miracle Dynamics supplies HRM technology to the Microsoft Dynamics business applications market and will expand Eque2’s current offering.
Richard Beaton, executive chairman at Eque2, said: “We have achieved significant growth over the last four years, but in order for us to maintain a market leading position it is vital we expand our offering further and capitalise on opportunities in different markets. With the financial firepower and support of LDC we’re confident that we can establish ourselves as the construction industry’s leading provider of specialist business management software and the Miracle Dynamics acquisition is an exciting first step on this journey.”
The deal was led by investment director John Clarke and head of LDC in the North West Jonathan Bell. Both will join the board as non-executive directors alongside Richard Vincent.
John Clarke, investment director at LDC, said: “Eque2 has become the leader in its field by offering exceptional solutions, the highest service standards and having an unwavering commitment to addressing the needs of its customers. For us, however, the deal is not just about the strength of the business and the market opportunity, but partnering with and supporting the management team to achieve their growth strategy.
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