LDC backs £12m MBO of Validus-IVC

LDC backed the MBO for a "significant minority stake" in Validus-IVC. The deal will provide capital to help support the continuing growth of Validus. It will also enable five founding shareholders to fully exit the business.

The deal was led by the company's existing management, which is headed up by chief executive Mike Srokowski.

This was LDC's fifth new investment of 2013, following on from its investments in the MBO of NRS Healthcare and mixers brand Fever-Tree.

Company
Validus was founded in Norwich in 2006. The business has a suite of software products that enable the assessment and processing of motor insurance claims for a blue-chip customer base.

The company also operates a specialised service that helps to identify high-risk or fraudulent motor claims. Validus manages claims for its customers on an outsourced basis while also providing a software-as-a-service product to be used by insurers' own in-house claims management teams.

The business employs 150 people and has a turnover of £7m with an EBITDA of £1.6m.

People
The deal was led by investment directors Paul Figgins and James Robinson, with support from LDC's regional managing director Martin Draper. Paul Figgins joins the company's board as a non-executive director. 

Advisers
Equity – Eversheds (Legal); BDO (Financial due diligence); Armstrong Transaction Services (Commercial due diligence).
Management – Grant Thornton (Corporate finance); Mills & Reeve (Legal).

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