Profitable exit for VC firm
The exit completes a profitable venture for Smedvig, who first invested in Tusker in 2000. It subsequently bought out the other shareholders and invested new capital in 2005, paving the way for a further growth strategy within the company.
During its tenure with Husker, Smedvig was heavily involved with the marketing vision and building up the leadership team to execute it.
Now Tusker will continue on its growth trajectory with the backing of private equity firm ECI Partners. Together they will be looking to build on Tusker’s £100 million revenue and 200 corporate customers – covering a total of 370,000 employees.
Tusker CEO David Hosking said that the move comes at a “very exciting time” for the company.
“The team at Smedvig have provided real and valuable hands on support throughout our growth years, and we are grateful for all of their input,” he added. “Tusker is now a substantial business generating revenues in excess of £100m and we are excited to have ECI as our new partner.
“Their depth of experience and extensive level of engagement with our team will provide a great platform from which we can continue our exceptional growth.”
Smedvig MD Rob Toms said the company was “proud to have worked with Tusker” in the development of the product and business itself.
“Smedvig only invest in a small number of exceptional businesses each year, where we firmly believe in the team, the model, and the market leadership potential,” he added.
Further reading on M&A: Top M&A deals of 2014 announced