
August acquires dentistry software developer Code
August Equity has acquired a majority stake in compliance software developer and HR service Code.
This is the 10th investment from August Equity Partners IV, which closed on £224m in 2017.
August Equity director James Bakewell said: "We have a great deal of experience in the dental, compliance and software markets, and have been aware of the company for a number of years." The acquisition was all-equity backed.
The firm has acquired Code from its former CEO, Paul Mendlesohn, and is backing the incumbent management team led by managing director Karen Penfold. August Equity is also bringing in Sati Sian as executive chairman and Jenifer Kirkland as CFO to lead the business.
Unquote understands that the company has the opportunity to expand into other sectors in healthcare beyond the dental market, while staying in Code's verticals of compliance and human resources software.
August Equity recently began formally fundraising for its fifth-generation fund and expects to close in early 2020. Unquote understands that the target fund size will be higher than the fourth-generation fund, while the vehicle will continue to follow the same strategy as its predecessors.
Company
Code offers compliance software and HR services for the dental sector. Headquartered in Holsworthy, the company was founded in 1978 and employs around 30 people.
People
August Equity – James Bakewell (director).
Code – Karen Penfold (managing director).
Advisers
Equity – CMS (legal); PwC (commercial due diligence); Eight Advisory (financial due diligence).
Vendor – WK Corporate finance (M&A).
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