A management team of six has led a buy-out of the software company they work for, with investment help coming from WestBridge Capital.
Cambridge-based Anglia Business Solutions has been acquired through a management buy-out (MBO) worth £6 million, achieving an exit for a family shareholder.
As part of the deal, WestBridge Capital has taken a lead role and provided £2.6 million in return for a 43 per cent stake in the food supply chain software company.
The 43 per cent stake is subject to reductions under the operation of a management performance mechanism, as part of the deal.
Anglia Business Solutions will now embark on international expansion as well as increasing its product development.
Further capital funding has been provided by The Co-operative Bank, vendor loan notes, management and an American investor group said to be linked with Giumarra Companies.
Robert Frost, Anglia Group chief executive officer, has led the management buy-out and comments, ‘The support we’ve received from the team at WestBridge Capital has been most welcome. The fit felt right from the start and together we’ve already agreed a roadmap for strong but achievable growth.
‘Basically, the market potential – particularly overseas where legislation is a few years behind the UK – is high. We just needed the capital injection to enable us to capitalize on the opportunity.’
Anglia Business Solutions will now look to complete the migration of its LINKFresh software onto the Microsoft Dynamics AX Platform. The investment will also be used to fund the development of its international operations, primarily through its California subsidiary.
Guy Davies, managing partner at WestBridge Capital, adds, ‘This is the sort of hidden gem company we like to invest in – established, profitable and with huge growth potential but in need of capital to implement its plans.
‘Anglia has exciting plans afoot, not least of which will be growing its presence and market share in the States where food traceability legislation is catching up with Europe.’