Newly launched Ethos acquires Ares-backed Miles 33

Financial details of the transaction remain undisclosed, though the business generates EBITDA of £3m, according to a statement, and Ethos writes equity cheques of £3-8m.

Ethos was launched this year by former Connection Capital partner and Bestport Capital founding partner Julian Carr alongside former Greenhill Capital Partners chief investment officer and LGV Capital managing director Brian Phillips. The firm currently invests its management team's own capital alongside that of a group of high-net-worth individuals.

Under its new owners, Miles 33 will invest in the marketing of its newly launched Gemstone and Wave2 products, look to make bolt-on acquisitions and pursue international expansion, with a particular focus on the US market.

During Ares' holding period, the company made seven bolt-on acquisitions, though its EBITDA fell from £6.3m in the 2006/07 financial year to the aforementioned figure of around £3m.

Debt
Santander provided a debt package to support the deal.

Previous funding
Ares acquired Miles 33 via European Capital via a £65m management buyout in 2007. Ares then sold European Capital to LGT Capital in 2017, but retained control over Miles 33.

Company
Founded in 1973 and headquartered in Bracknell, Berkshire, Miles 33 develops online publishing software that includes editorial content management systems in addition to advertising management and data analytics tools. The company has a headcount of 83 across offices in the UK, US, Italy and Malaysia.

Miles 33's clients include the Boston Globe, Newsquest Media Group, Virgin Radio, Radio Monte Carlo and the Bristol Post.

People
Ethos Partners – Julian Carr (principal); Sandy Farmer (investment director).
Miles 33 – Mike Moore (CEO).

Advisers
Equity – Quantuma, Ian Barton, Adrian Howells (corporate finance).

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• Topics
• Buyouts
• Exits
• UK / Ireland
• Technology
• United Kingdom
• Secondary buyout
• European Capital