LDC, the UK’s leading mid-market private equity investor, has backed the secondary buyout of Mandata in a £20m deal that will accelerate organic growth.
With LDC’s support, Mark and the Mandata team will embark on the next stage of an ambitious growth strategy.
The deal also represents an exit for Synova Capital.
Under the leadership of CEO Mark Norcliffe, Mandata has grown rapidly. Today it supports many of the UK’s haulage businesses including 30% of Motor Transport’s top 100 operators, actively managing over 10,000 vehicles, and employs 60 people at its offices in Cramlington and Leeds.
Mark Norcliffe, CEO of Mandata, said: “Businesses across the transport and logistics sector are continually looking for new ways to reduce costs, drive efficiencies and improve productivity. By developing innovative software solutions, we’re helping to streamline activity and deliver results that have a tangible impact on our customers’ bottom line.
“We’ve made significant progress in recent years and are now at a key point in our growth journey. We’re an ambitious business and by partnering with LDC we not only have the financial support to help us turbocharge growth, but a strategic partner that brings a track record of supporting high-growth technology businesses, has an on-the-ground presence in the North and an in-depth knowledge of our sector.”
The transaction was led by investment directors Ben Snow and Gareth Marshall, and director John Garner at LDC in Leeds. Ben will join the board as non-executive director.
Ben noted: “Hauliers and logistics businesses want data at their fingertips. By investing in its product offering, Mandata is helping its customers to harness their data, make the shift from paper-based to online operations and ultimately operate more efficiently. The business has gone from strength to strength under Mark’s leadership and as market demand increases there is huge potential for further growth.
“For us, Mandata has the three key ingredients we look for in any business. It has a fantastic product and proposition, an ambitious and highly-skilled management team and a clear growth strategy.”
John Garner added: “Mandata is a brilliant example of the innovative businesses we have here in the North East and we’re looking forward to supporting the team on its next phase of growth.”
LDC has been operating in the region since 1989 and since then it has delivered some of the firm’s most exciting deals. This includes a multi-million-pound investment in specialist engineering consultancy Patrick Parsons in September 2017, a deal which saw LDC support the UK expansion of the Newcastle-headquartered firm.
Photograph: Chris Wall Client Services Director Mandata , Ben Snow and Gareth Marshall Investment Directors LDC, Mark Norcliffe CEO Mandata and Kevin Marshall Development Director Mandata.
1. LDC is the private equity arm of Lloyds Banking Group and is authorised and regulated by the Financial Conduct Authority.
2. LDC backs ambitious management teams from UK-based companies seeking up to £100m of equity for management buy-outs, institutional buy-outs or development capital transactions.
3. LDC has a portfolio of 90 businesses across the UK which collectively generates £5.5bn of revenues and employs in excess of 32,000 people.
4. LDC invests in a broad range of sectors and has particular experience in Construction and Property, Financial Services, Healthcare, Industrials, Retail and Consumer, TMT, Travel and Leisure and Support Services.
5. LDC has committed to invest £1.2bn in UK mid-market businesses over the next three years.
6. Over the last three years (2014-16), LDC has invested over £1bn of equity and generated exit proceeds of more than £2bn.
7. LDC is the leading private equity company in the UK mid-market. Recent transactions include investments with Paladone, Precision Micro, Duncan and Todd, Lakelovers, Eque2, IP Solutions, Vista, Ensek, Stuart Turner and Patrick Parsons.
8. LDC has a UK regional network with offices in Aberdeen, Birmingham, Bristol, Cardiff, Leeds, London, Manchester, Nottingham and Reading.
9. For further information, visit www.ldc.co.uk/