LDC supports £16m SBO of Eque2 from Livingbridge

Kenny Wastell
10 November 2017

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LDC has invested in the ТЃ16m secondary buyout of Eque2, a UK-based developer of administration software for the construction industry, from Livingbridge.

The GP has acquired a "significant minority stake" in the company as part of the transaction, according to a statement.

Eque2 bolted on Miracle Dynamics Payroll and HR Solution in conjunction with the deal. The business will also pursue future acquisitions and invest in new product development.

Under the vendor's tenure, Eque2 invested in product development, with a particular focus on SME-focused platforms, and expanded its geographic footprint across the UK. It recently won contracts with steel frame contractor Dulley Ceilings And Partitions, developers Hayfield Homes, The Ambassador Group and Robertson Homes, security systems supplier Rotec Security Solutions, roofing installation business Ashford Hill Roofing Company and foundations business Speedeck Foundations.

Following the latest deal, the business has appointed former Union Square CEO Richard Vincent as non-executive director, alongside LDC investment director John Clarke and Jonathan Bell, head of LDC in the north-west of England.

The transaction is the fourth made by LDC's north-west team in 2017.

Yorkshire Bank provided banking facilities to support the transaction.

Previous funding
Livingbridge invested in the carve-out of Eque2 (then known as Sage Construction) from parent group Sage in May 2013. The firm drew capital for the transaction from its Baronsmead VCT.

Company
Manchester-headquartered Eque2 develops accounting, budgeting and project management software for the construction industry. According to publicly available documents, the business generated a turnover of £10.6m in the year ending in April 2016, up from £9.8m year-on-year, with an operating profit before amortisation and exceptional costs of £798,000.

People
Livingbridge – Bevan Duncan (investment director).
LDC – John Clarke (investment director); Jonathan Bell (head of north-west).
Eque2 – Richard Beaton (executive chairperson).

Advisers
Equity – Pinsent Masons, Gregg Davison (legal); KPMG, Jonathan Boyers (financial due diligence).
Company – Clearwater International (corporate finance).