Inflexion invests in management buyout of ITM

Kenny Wastell
08 May 2018

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Inflexion Private Equity has invested in the management buyout of UK-based financial services IT and software company Independent Transition Management (ITM).

Financial details of the transaction remain undisclosed, though Unquote understands the GP acquired a majority stake in the company and drew capital from its 2016-vintage Inflexion Enterprise Fund IV, a £250m vehicle that writes equity cheques of £10-20m.

It is also understood that the transaction took place on an all-equity basis.

According to publicly available documents, ITM generated a turnover of £10.6m in 2016, with an operating profit of £1.6m. However, the business grew considerably during the preceding year, with turnover increasing by 25% and operating profit increasing by 435%.

As part of the deal, the company's founder-owners will walk away from ITM, while the management team will continue in their existing roles.

Under its new ownership structure, the business will look to expand its range of products into new market verticals.

Company
Founded in 2003, London-headquartered ITM provides software, IT services and support related to data auditing, management administration and migration services. Its clients are financial service providers including pension funds, trusts and administrators, such as Aviva, Legal & General, Cabinet Office and BT.

ITM has additional operations in Guildford and Edinburgh, with a total headcount of 120.

People
Inflexion Private Equity – Andrew Mainwaring (partner); Robin Senivassen, James Stevens (investment executives); Abhishek Majumdar (assistant director).
Independent Transition Management – Darran Blount (CEO); Duncan Howorth (executive chair); Maurice Titley (consulting director); Matt Dodds (sales and marketing director); Gurmit Dhesi (chief financial officer).

Advisers
Equity – Clearwater International (corporate finance); Squire Patton Boggs (legal); EY (commercial due diligence); PwC (tax).
Vendor – KPMG (commercial due diligence).