Private equity firm ISIS Equity Partners has backed the £14 million management buy-out of software firm Red Box Recorders.
Nottingham-headquartered Red Box Recorders has charged itself for growth with the help of ISIS Equity Partners.
A £14 million management buy-out (MBO) is being led by company CEO Lee Jones, with the new capital set to be bused to strengthen its support of its resellers and increase its international development, which has seen it set up bases in New York, Singapore, Hong Kong and Dubai.
Red Box Recorders was set up in 1998 by Iain Worthington and Andrew Jackson as an outsourced software developer for Racal Recordings. It now provides voice and data recording and analytics mainly to financial services, contact centres and the public sector.
Jones comments, ‘We have a great team of people who are already to continue to drive the growth of the business.
‘ISIS have worked hard to understand us and our market and we are looking forward to a mutually rewarding partnership with them.’
The transactions the first to be made through the ISIS V fund, a £360 million pot which commenced its investment period in July 2012.
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ISIS Equity Partners will be backing the enforcement of the company’s support of its resellers, a distribution strategy which is said to have been started by Jones when he joined in 2007. Worthington and Jackson will now be able to ‘crystallise’ the stake they have in the business.
Daniel Smith, partner at ISIS Equity Partners, adds, ‘With Lee’s help in recent years, Iain and Andrew have built a fantastic UK technology business in Red Box.
‘It has great software, a compelling reseller-focussed distribution strategy and an excellent team.’
The deal is the fifth for the investment firm in 2013 following investments into Eque2 and Create Health in May and April, and disposals of Micro Librarian Systems and LBM Direct Marketing in March and February.