ECI Partners prepares Moneypenny sale via Houlihan Lokey

The mid-market private equity firm has appointed Houlihan Lokey to guide the exit of the business-to-business outsourced communications provider, the sources said.

A sale process could launch after Easter, two of the sources said, although no final decision has been made on the timeline, which will depend on market conditions, one added. Potential buyers have begun conducting prep work ahead of a formal sale, according to one of the sources.

Moneypenny is expected to be marketed off GBP 15m in EBITDA, two of the sources said. The Wrexham, North Wales-headquartered company generated GBP 6.7m in EBITDA on GBP 34.4m revenues in FY21, up from GBP 5m EBITDA on GBP 30.1m in revenues recorded in the same period the year before, according to financial filings.

The lack of a direct comparable to Moneypenny could make the business hard to value in a sale, one of the sources said. The company was acquired by ECI in November 2018, valuing the then GBP 10m EBITDA company at a reported 15x EBITDA multiple, according to previous Mergermarket intelligence. In March 2020, Moneypenny acquired US-based bilingual telephone answerer Voice Nation and business phone app Ninja Number.

Founded by siblings Ed Reeves and Rachel Clacher in 2000, Moneypenny provides outsourced personal telephone and web-based communications for over 21,000 businesses, handling around 20m calls per year, according to its website. The 1,000-employee company, which also offers virtual office and PA solutions, generates around 35% of its revenues internationally via its office in Atlanta, Georgia, according to ECI's website.

A representative for Houlihan Lokey declined to comment. Moneypenny and ECI Partners did not respond to requests for comment.

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• Topics
• Exits
• UK / Ireland
• Technology
• ECI Partners
• Houlihan Lokey
• Mergermarket