Email and SMS marketing company Pure 360 has closed a £10.5 million investment round, with contributions coming from Scottish Equity Partners, Investec and management.
Attempting to address a market worth a reported £513 million in 2013, Pure360 works with businesses to boost the value of email and SMS marketing campaigns.
The £10.5 million deal sees existing backer Encore Capital exit its investment in the business. Encore previously owned a majority equity stake, which was bought in March 2009, and has generated a return of 4x and an IRR of 47 per cent.
Scottish Equity Partners, which has portfolio companies including travel search company Skyscanner and online fashion platform Matches Fashion, is contributing £6.5 million to the transaction. The remaining balance is being made up by Investec and the company’s management.
Stuart Dawson, CEO of Pure360, says that the investment will allow the business to speed up product innovation and create a ‘world class’ client service function.
He adds, ‘Pure360 has doubled both its turnover and headcount since 2008. The next three years will see a further 65 jobs created with turnover expected to double again to £14.5 million.’
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Gordon Beveridge, principal at Scottish Equity Partners, comments, ‘The funding will extend the capabilities of Pure360’s platform, broadening features within segmentation, geolocation and automation whilst creating the most usable interface out there.’
For Encore Capital, the disposal represents the third it has completed during the last 12 months. Its sale of Probikekit.com to the Hut Group saw it scoop UK Deal of the Year at the M&A Awards 2013 in June.
Speaking then, Khilan Dodhia, partner at Encore Capital, said that going into the rest of 2013, Encore Capital is keen to get back on the dealmaking circuit.
