
LDC invests in Texthelp
LDC has invested in reading assistance software provider Texthelp.
LDC has introduced David Gilbertson as non-executive chairman, who joins the board alongside LDC director Steve Aston and investment director Joseph Fison. The company's existing management team, including the chief executive, technology and financial officers, will continue to lead the company and reinvested in the newco.
Previously backed by Delta Partners, this deal marks a significant return for the firm, according to a statement. Texthelp CEO Mark McCusker told Unquote: "Delta supported us through many years of growth and the reinventions we undertook every three or four years that are necessary in the technology industry."
Following the transaction, the company plans to expand into new and existing markets and develop its software proposition, particularly products pertaining to data analytics.
The company generates £19m in sales, mainly from the North American market. This is up from £11m in 2012. Texthelp has also recently launched in the Middle East and in South America.
No debt was used for the transaction.
Previous funding
Ireland-based Delta Partners provided £250,000 in 1996.
Company
Founded in 1996, Texthelp is a provider of literacy support software for the education and corporate sectors used by people with dyslexia and other learning difficulties, as well as those whose second language is English. Its product range includes Read&Write, EquatiO, Browsealoud and WriQ. The company employs 165 people at its headquarters in Antrim, Northern Ireland and in offices in the US and Australia.
People
LDC – Steve Aston (director); Joseph Fison (investment director)
Texthelp – Mark McCusker (CEO); Martin McKay (chief technical officer); Seamus Scullion (CFO).
Advisers
Equity - Gateley (legal); KPMG (financial due diligence, tax).
Company - Pinsent Masons (legal).
Management - Pinsent Masons (legal); EY (tax).
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