WestBridge, Octopus divest Vista to LDC in £29.4m SBO

LDC has invested £14m in the deal, which will support expansion in Europe and bolt-on acquisitions.

The sale represents a 4x return for WestBridge after a three-and-a-half-year holding period, equivalent to an IRR of 80%.

The deal is the third exit for WestBridge's £50m maiden fund, according to a statement issued by the firm; the vehicle has returned an average 4x multiple. The GP said WestBridge SME Fund has returned close to 100% of investors' drawn capital following the transaction.

As part of the deal, LDC investment directors Dewi Hughes and Pete Latham will take a seat on the Vista board.

Under the vendors' tenure, the company has expanded internationally, appointing additional field service engineers, as well as warehouse and repair centre staff to support new continental European clients in April 2016.

Previous funding
Vista first received private equity backing in 2008, when Finance Wales and HSBC joined forces to support the management buyout of the business from parent company DigiPos Store Solutions Group.

WestBridge then supported the £12.3m management buyout of Vista in May 2014. Octopus provided further equity and mezzanine debt to support the deal via its VCT funds, with senior debt and working capital facilities provided by Clydesdale Bank. Finance Wales generated a return of 4.5x from the investment.

Company
Founded in 1995, Cardiff-headquartered Vista is an IT support business serving the retail, hospitality and leisure industries. It focuses on payment technologies, robotics, virtual reality applications and artificial intelligence.

The company generated a turnover of £17m in its most recent financial year, according to the statement. It has clients in the UK, continental Europe and North America, including Lloyds Pharmacy, Monsoon, Odeon Cinemas and Pets at Home.

Vista has a headcount of around 200 people, including 120 field service engineers.

People
WestBridge Capital – Sandy Smart (partner, chief investment officer); James Wakefield (partner).
LDC – Dewi Hughes, Pete Latham (investment directors).
Vista Retail Support – Richard Cottrell (managing director); Mark Molyneux (chairperson); Kath Roach (non-executive director).

Advisers
Vendor – PwC (corporate finance); Capital Law, Tom Kelleher (legal); CIL Management Consultants (commercial due diligence).
Equity – Deloitte (corporate finance); Blake Morgan (legal); Hullbrook (management due diligence); Alvarez & Marsal (financial due diligence).
Management – Deloitte (corporate finance); Hugh James (legal).

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• Topics
• Exits
• Buyouts
• UK / Ireland
• Technology
• United Kingdom
• LDC
• WestBridge Fund Managers
• Octopus Investments
• Secondary buyout