Volpi invests €90m in Version 1 SBO

As part of the deal, BDO will fully divest its stake in the business, generating "a 250% return" after a three-year holding period, according to a statement. Additionally, 40 members of Version 1's senior management have also invested in the company.

Volpi has taken a controlling stake in Version 1 as a result of the deal, a source close to the situation told unquote".

Under its new ownership structure, the business will undertake an international expansion strategy, with plans to make bolt-on acquisitions across the UK and mainland Europe. The company said in a statement that it intends to position itself for a future IPO.

Version 1's founders, Justin Keatinge and John Mullen, will retain their positions as board members at the company while former chief operating officer Tom O'Connor has been appointed CEO.

Since BDO's initial investment, Version 1 has undertaken an international acquisitive growth strategy, bolting on three UK-based companies. Most recently, it acquired Warwickshire-based Beoley Mill Software, which provides services for clients across manufacturing, distribution, logistics, leisure, retail and business services.

The transaction is Volpi's first investment in an Irish company and its largest deal to date, according to the aforementioned statement. It follows the acquisition of healthcare support and diagnostics business Medinet.

Volpi was founded in 2015 and is currently taking commitments for its maiden fund. According to publicly available documents, the vehicle has received commitments from Access Capital, Hermes GPE and BVK PE.

Debt
Lloyds, Bank of Ireland and RBS provided a senior debt package to support the deal, unquote" understands.

Previous funding
In July 2014, BDO provided a €8m round of growth capital funding to Version 1. The firm invested via its €75m vehicle BDO Development Capital Fund, according to unquote" data.

Company
Founded in 1996, Dublin-headquartered Version 1 is an IT consultancy. The company has a headcount of 900 and is anticipating a turnover of €100m in the current financial year, according to a statement.

People
Volpi Capital – Crevan O'Grady (CEO).
Version 1 – Tom O'Connor (CEO).

Advisers
Equity – Clearwater International (corporate finance).

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• Topics
• Expansion
• Exits
• UK / Ireland
• Support services
• Ireland
• Secondary buyout