Synova generates 8x return on Mandata sale to LDC

Kenny Wastell
01 May 2018

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Synova Capital has generated an 8x return on invested capital from the ТЃ20m sale of haulage and logistics software company Mandata to LDC.

Following the deal, the company will continue with its organic growth strategy.

The deal brings to an end a five-year holding period for the vendor, which was invested in the company via its £50m maiden fund.

Under Synova's tenure, the business has expanded the capabilities of its software suite to incorporate mobile platforms and a cloud-based system. It also invested in a new disaster recovery facility, which was launched in November 2015.

Following the latest deal, LDC investment director Ben Snow will take a seat on the board as a non-executive director.

Santander provided debt to support the transaction.

Company
Founded in 1974 and headquartered in Cramlington, Northumberland, Mandata provides software that enables road transport operators to manage workflow and data. Its software includes functions such as traffic planning, tracking, telematics and invoicing.

Mandata has additional operations in Cramlington. The company's parent group, Mandata Holdings, generated a turnover of £6m in the year ending February 2017, according to publicly available documents, with an operating profit of £852,000.

People
Synova Capital – Alex Bowden (partner).
LDC – Ben Snow, Gareth Marshall (investment directors); John Garner (director).
Mandata – Mark Norcliffe (CEO).

Advisers
Vendor – Clearwater International (corporate finance); Pinsent Masons (legal); KPMG (financial due diligence).
Acquirer – KPMG (corporate finance, transaction services); Muckle (legal).