Foresight backs Datapath buy-out

Datapath, a supplier of graphics cards used to control videowall displays, has been bought by its management for £12 million. The buy-out was backed by Foresight Venture Partners, which invested £3 million through Foresight VCTs 2, 3 and 4.

The remainder of the consideration was financed through debt from Natwest and funds from the management team. Private equity investor Simon Hunt, who was introduced to Datapath by Foresight, also backed the deal, and becomes the company’s new chairman.

Steve De’Ath, director of Datapath, comments: ‘This investment underlines the company’s market-leading position. It also gives us a platform to attract talented individuals and strengthen the management.’

Derby-based Datapath has revenues of almost £10 million and a reported growth rate of ‘30 per cent plus per annum’. Its equipment is used in more than half of all videowalls installed worldwide.

This is the fourth buy-out backed by Foresight this year, following its investments in immersive theatre specialist Global Immersion, hi-tech manufacturer TFC Europe and heritage-focused media business Heritage House.

The transaction was instigated and led by advisory firm Cooper Parry.

Marc Barber

Marc was editor of GrowthBusiness from 2006 to 2010. He specialised in writing about entrepreneurs, private equity and venture capital, mid-market M&A, small caps and high-growth businesses. More by Marc Barber