The Business Growth Fund has closed its second August investment and added another IT and technology business to its portfolio.
A content management systems business, which counts the likes of Conde Nast, Thomson Reuters and UHM as clients, has netted £2.25 million of growth capital.
Abacus e-Media has secured the investment from the bank-backed Business Growth Fund (BGF), which was set up in 2011 and is worth £2.5 billion.
Based in London, and with offices in Portsmouth and Hertfordshire, Abacus e-Media provides content management systems (CMS) and audience development platforms for the media, publishing and public sectors.
The business was founded in 1997 and posted revenues of £4.5 million for 2012. It will be using the £2.25 million it has received to ramp up its sales and marketing activity as well as continue with the development of its existing software platforms.
Steve Feigen, CEO of Abacus e-Media, comments, ‘What attracted us to the BGF has the long-term view they take on their investments, and the strong sense that they work to support the vision of the business.
‘Their investment will help us to drive the development of our ADvance and Webvision platforms and to extend our client base much more quickly than we could otherwise have hoped to do.’
As well as the equity capital investment, the BGF has also provided a new non-executive director for Abacus e-Media. Former Logica chief marketing officer Nick Caplan will take up the position having also worked as chairman of IT services provider Managed Networks.
More on the Business Growth Fund:
- BGF makes maiden investment in Benefax
- Youngest company to date backed by BGF
- BGF enters Wales with SHS deal
The Abacus e-Media Webvision modular CMS platform is used by editors and journalists to manage workflows and publish content in a way described as ‘intuitively’.
Its ADvance offering is an audience development platform which allows publishers and other registration and subscription-based institutions to market and fulfil online and print products quickly.
Chris Hodges, investment director at the BGF, says that Abacus e-Media is an exciting software company.
‘It has grown strongly and serves a host of impressive clients across the public, media and publishing,’ he adds.
‘Webvision, the company’s core CMS platform, provides a robust platform for investment and growth.’
The BGF has now made investments in 31 companies from 17 sectors and has placed 22 non-execs into board positions.
See also: Our exclusive Business Growth Fund roundtable:
- Taking on capital for acquisitions
- Marketing and new hires for companies after backing
- Capital expenditure for businesses post-investment
- Building out new products
- Video: Deciding when and how to take on backing
- Video: How acquisitions can accelerate growth
- The Business Growth Fund: Two years in numbers
- Stephen Welton: Entrepreneurs, don’t be afraid to ask for help