LDC sells Clifford Thames to US trade buyer

The sale generated a money multiple of 2.7x and an IRR of 47% over the three-year period, LDC said in a statement.

LDC backed the £50m management buyout of the UK-based automotive data firm in 2014. The company's previous backer, Octopus Investments, reinvested in the business as part of the deal.

At the time, LDC planned to roll out the company's software platform into new global markets and identify new acquisitive opportunities. Clifford Thames did make two strategic acquisitions: it bought AC Autoconsult in Germany and a Ford Electronic Parts Catalogue platform.

OEConnection provides e-commerce technology for original equipment manufacturers' distribution networks. OEConnection is backed by Providence Equity and operates across North America, Australia and New Zealand.

Previous funding
The company has a history of private equity involvement, dating back to 1993 when 3i committed £1m, according to unquote" data. In January 2002, the GP made a £350,000 capital commitment to the firm, followed by a £400,000 injection in 2003 to boost the firm's working capital base.

February 2010 saw Octopus Investments commit £6.25m to the business in a mezzanine deal that enabled the management to buy back its stake from 3i and boost product development.

Company
Headquartered in Chelmsford, Clifford Thames provides outsourced services to the automotive parts, servicing and repairs industry. The firm provides data and operational advisory services to its customer base, which includes vehicle manufacturers, sales companies, franchised dealer networks, bodyshops and leasing companies.

The firm was originally founded in 1948 and has 500 employees.

People
LDC – Yann Souillard (head of LDC London & South).

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