Horizon Capital backs Sapphire Systems

Greg Gille
08 January 2020

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Horizon Capital has invested in Sapphire Systems, a UK-based company that provides enterprise resource planning (ERP), financial management, accounting and business software.

Financial terms of the transaction, as well as the size of Horizon's stake, were not disclosed. Muzinich & Co provided debt financing for the transaction.

The deal was structured via a newco, with Horizon's investment allowing for the vendors to realise part of their holdings. Part of the investment will also be dedicated to funding future growth plans and acquisitions for the company.

The deal was sourced as part of a structured process, although Horizon had followed the business for a number of years as part of its efforts to target the ERP sector.

The transaction is the fourth from the Horizon Capital I fund, which closed on £200m in Q4 2018. In addition to the platform investments, the GP has also completed 20 add-ons over 2019.

Horizon partner Luke Kingston and director Tom Maizels will join Sapphire's board.

Company
Founded in 1993 and based in London, Sapphire is a provider of ERP and financial management software. It has a 1,000-strong client base and employs 250 people across offices in the UK, the US, India, Mexico, Philippines and Argentina.

Sapphire generated EBITDA in excess of £5m from revenues of £38m in 2019.

People
Horizon Capital – Luke Kingston (partner); Tom Maizels (director).

Advisers
Equity – CMS Cameron McKenna Nabarro Olswang (legal); Deloitte (tax, financial due diligence); Armstrong TS (commercial due diligence); Lincoln International (debt advisory).
Company – Results International (corporate finance); Taylor Vinters (legal); Parisi Tax (tax).