Tenzing makes third deal from debut fund with CitNow

Kenny Wastell
02 March 2018

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Tenzing Private Equity has invested in CitNow Video, a UK-based provider of video software for the automotive industry.

Unquote understands the deal was an all-equity transaction, with Tenzing acquiring a majority stake in the business and allowing some of the existing management team to make an exit.

Financial details of the transaction remain undisclosed, though the GP is currently investing from its £200m maiden fund, which held a final close in January 2017 after just three months on the road. The vehicle typically targets buyout investments in UK businesses valued at £10-75m.

Under its new ownership model, CitNow will invest in product development and its sales operations, as well as pursuing geographical expansion across the UK and continental Europe. The business will work alongside Bill Collis, a member of the Tenzing entrepreneurs panel and president at visual effects software company Foundry.

According to a statement, the company increased its global revenues by more than 50% year-on-year in 2017.

Company
Founded in 2008 and headquartered in Wokingham, Berkshire, CitNow is a video software developer for the automotive industry. Its platform is designed to enable car dealerships to capture footage of vehicles, repairs and parts and directly distribute the content to customers and marketing platforms.

It is understood the business generated a turnover of £11.6m in 2017.

People
Tenzing Private Equity – Christian Hamilton (co-founder, managing partner).
CitNow Video – Alistair Horsburgh (CEO).

Advisers
Equity – Alvarez & Marsal (corporate finance); Osborne Clarke (legal); CIL (commercial due diligence); Intuitus (IT due diligence); Deloitte (tax); Continuum (management due diligence).
Company – Progeny (corporate finance); Shoosmiths (legal); Deloitte (corporate finance); BHP (legal).