Synova kicks off new fund deployment with Learnlight acquisition

Incumbent investor Beech Tree Private Equity has reinvested alongside Synova, having originally backed the edtech business in 2017, according to a press release. Learnlight’s existing management team, led by the founders, remain significant shareholders in the company.

Investec provided debt facilities to support the transaction, it said. Beech Tree’s Managing Partner Andy Marsh will remain on the board of Learnlight, joined by Synova’s partner Tim Ashlin and Investment Director Mike Mullally.

Synova held a first and final close for its latest vehicle, Synova V, on GBP 875m, surpassing its GBP 750m target, in July 2022 after three months on the road, as reported. The fund will invest GBP 15m-GBP 150m in companies in the UK, Ireland, and continental Europe valued between GBP 20m and GBP 250m.

Beech Tree Private Equity Fund Partners III was registered with the U.S. Securities and Exchange Commision in September 2020, according to Unquote Data. The fund had a target of USD 192m and expected to follow the strategies of its predecessor funds and invest in high-growth companies based in the UK, functioning in sectors like technology, support services, financial services, among others. The GP typically invests into their portfolio companies with equity tickets in the range of GBP 10m-GBP 35m.

Growth plans
Synova and Beech Tree are set to support Learnlight to continue to grow both organically and via acquisitions to expand internationally. Being a digital-first provider the firm has grown quickly, finding its fit within a fragmented market, largely dominated by traditional face-to-face training providers, a source familiar with the matter told Unquote.

Leveraging on the structural shift in the delivery of language and skills training from face-to-face to virtual, the company is aiming to scale further, having grown its virtual training service by more than 40% per annuum in recent years, according to the press release.

Following acquisitions into five countries in Europe and in Mexico, Learnlight will look to grow further in these territories as well as new ones, the source said. It plans to continue and accelerate the number of M&A across several regions, including the US and Asia, the source added.

In Europe, the company will “definitely” seek to grow its presence in France, said the source. Although there is no acquisition imminently lined up, existing relationships with companies in other regions will primarily feed into Learnlight’s aapipeline.

The company generated EUR 40m in revenues last year and although most buy-and-build targets will be of smaller size, the goal is to complete a few larger scale acquisitions, the source said.

Looking to also expand the provision of its services beyond language training and towards intercultural services, Learnlight will also look to develop its technology, largely organically, the source added.

Synova declined to comment.

Company
Founded in 2007, Learnlight provides language, intercultural and skills training. Its offering includes virtual training of bespoke lessons in real time. It has around 300 employees, serving over 1,200 customers, including Siemens, Deutsche Telekom and Hyundai, across more than 40 countries, including Spain, Germany, Italy, France, UK, USA and Mexico.

People
Synova − Tim Ashlin (partner), Mike Mullally (investment director), Charles Dale (investment director), Mao Isobe (investment manager).
Learnlight − Benjamin Joseph (CEO), Rupert Hillier (COO).
Beech Tree − Andy Marsh (managing partner), Adam Rudd (partner).

Advisers
Synova − Clearwater International (corporate finance); KPMG (financial & tax due diligence); PwC Strategy& (commercial due diligence), Intechnica (tech due diligence); CMS (legal due diligence).
Beech Tree – Deloitte (financial and tax due diligence); EY-Parthenon (commercial & tech due diligence); DLA Piper (legal).

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