deals update 27
Business Growth Fund in first investment
Spectrum leads BGF deal at fast-growing Benefex
The Business Growth Fund (BGF), established to help Britain’s fast-growing smaller and medium sized businesses,has announced its first investment in Benefex, a leading provider of flexible, online employee reward and benefit schemes that operates in a high-growth sector.
Benefex enables large organisations to tailor their rewards and benefit packages to individual employees, communicate effectively online with staff, and outsource administration and support of their schemes.
The BGF has invested £4.2 million of growth capital in Benefex and will take a minority stake. With over 50% growth in turnover year on year, Benefex continues to expand rapidly with turnover approaching £10m in 2012. Reading- based Spectrum Corporate Finance introduced Benefex to the Business Growth Fund.
The company is led by Matt Waller, a 33-year-old entrepreneur, who started the business from his own home when he was just 25, and has grown it to become one of largest online employee reward and benefits providers in the UK.
The company provides services to over 500 clients, managing online benefits schemes for over one million employees in more than 40 countries. Its clients include the AA, Coca Cola, Bank of America Merrill Lynch, De Beers, E.ON,
Philips, MTV and Centrica. It operates from its head office in Southampton, with a further presence in Marlow and London.
The market in which Benefex operates is enjoying rapid growth. Many employers are looking at how best to attract, retain and motivate their staff and recognise the value of flexible rewards and benefits packages that can be tailored to the needs of the individual. This market is believed to be worth in the region of £100 million and is growing at nearly 10%. These arrangements are often complex, particularly for large companies, which in turn is driving demand for outsourced services.
Service providers which offer technological support are outperforming the market, growing at twice the rate at some 20%. This is due to an increasing need for technological support, use of online and intranet services and imminent legislative changes. For example, from October 2012, all employers will have to enroll eligible workers into workplace pension schemes, generating a clear need for online services.
The BGF’s investment will enable Benefex to continue the development of innovative solutions, expand its product and service lines and extend its international footprint. Immediate opportunities exist in the US and Asia Pacific.
As a result of this investment, Benefex expects to create a further 100 jobs in Southampton, Marlow and London.
Paul Oldham, BGF regional director, commented: “Benefex is an exciting business, led by a talented and entrepreneurial management team. A start up just eight years ago, it has created a strong market position, developed its service offering and built an impressive client base. It has exhibited consistent growth in tough economic conditions.”
Matt Waller, the CEO of Benefex and the first entrepreneur to be backed by the BGF, commented: “We come from entrepreneurial, ambitious roots. We recognised that the business had reached the point where we needed external capital to take it to the next level and invest in key areas. Without it, we would continue to grow but not at the rate that we would like to.”
Stephen Welton, CEO of the BGF commented: “Benefex is the first of many investments that we will be making in fast-growing UK businesses.”
Spectrum Corporate Finance introduced Benefex to the Business Growth Fund. Ian Milne, partner at Spectrum, said: “We were delighted to work with the Business Growth Fund on their first investment and to introduce them to the team at Benefex.
”Benefex operates in a dynamic sector with a market-leading proposition and is led by an entrepreneurial and innovative management team. The new investment by the Business Growth Fund will enable the business to capitalise on exciting new development opportunities in its market place both in the UK and overseas and so continue its impressive record of growth and new job creation.”
Project Trust Battery
Details: HW Corporate Finance is delighted to announce its recent advisory role on the capital raising for Trust Technology Investments regarding a new mobile technology. The team assisted in the preparation of the business plan and ran the fundraising process. This transaction valued the business at c.£6 million
Funding: Raised through an SPV from a number of private individuals
Corporate Finance Advisers: Charles Whelan and David Lock – HW Corporate Finance LLP
Legal Advisers: Rob Hayes – Manches LLP Deal Value: Not disclosed
Details: The Barclays Corporate team in Oxford, led by relationship director Tom Windett, has provided funding to Intercrop Holdings to enable the completion of the second phase of a management buyout. The business is a major UK and Spanish grower of fresh salads and herbs, supplying the main UK supermarkets and prepared foods market
Legal Advisers: SNR Denton (Francesca Bettermann) Corporate Finance Advisers: Mazars LLP (Mark Standish)
THE BUSINESS MAGAZINE – THAMES VALLEY – NOVEMBER 2011
www.businessmag.co.uk
Benedict McQueen (partnership)
Completion Date: 09/2011 Target: Benedict McQueen (partnership) Acquirer: Menzies Business Recovery LLP
Details: Barlow Robbins LLP (lead partner Rebecca Glazebrook) acted for the partners of Benedict McQueen in the sale of their insolvency practice to Menzies Business Recovery
Acquisition of Independent Homecare Services
Completion Date: 05/09/2011 Target: Independent Homecare Services Acquirer: Prestige Nursing Deal Value: Not disclosed
Intercrop Holdings
Details: Mundays advised Prestige Nursing on the acquisition of the entire issued share capital of Independent Homecare Services (a provider of domicillary home care services in the London area) from the founder owners. Neale Andrews led Mundays team, assisted by David Regan and Fiona Moss
Funding: Not disclosed
Legal Advisers: Mundays for the acquirer and Foskett Marr Gadsby & Head for the sellers Financial Due Diligence: In-house Commercial Due Diligence: In-house
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