ISIS Equity Partners (ISIS) has sold software specialist Boldon James to QinetiQ for £20 million. The deal will be settled for an initial cash consideration of £15.7 million, with a further £4.3 million payable depending on performance targets.

ISIS Equity Partners (ISIS) has sold software specialist Boldon James to QinetiQ for £20 million. The deal will be settled for an initial cash consideration of £15.7 million, with a further £4.3 million payable depending on performance targets.

The sale to QinetiQ, a defence and security technology company, yields a multiple of 3.11 times and a rate of return of 69.5 per cent to ISIS’ clients.

ISIS backed the £5.5 million management buy-out of Boldon James (using funds from its Baronsmead VCTs) in June 2005. The original deal was led on behalf of ISIS by Andy Gregory and James Hall. Gregory, who took a place on the Boldon James board, led the exit.

Boldon James is a UK-based provider of solutions for secure messaging, primarily for military, government and security customers. Its applications are used to send strategic and tactical information across multiple sites and geographic jurisdictions.

Recent major contract wins include the UK Cabinet Office and Ministry of Defence. International client wins have included the US Department of Defence and the German Bundeswehr.

KPMG Corporate Finance advised shareholders on the sale, while legal advice was provided by Halliwells.

Boldon James employs 68 people and has offices in Crewe and Maidenhead.