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LDC takes minority stake in Solid Solutions, BGF exits

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LDC has taken a significant minority stake in 3D design software reseller Solid Solutions, while BGF has exited the company.

A newco has been established for the transaction, while the company's management team will retain its majority stake. Banking facilities were provided by Muzinich & Co and Santander.

The investment will go towards exploring acquisitions, and rolling out new services and products. LDC's Rob Schofield and Richard Whitwell will join the company's board as non-executive directors.

BGF investor Ian Downing said: "Bringing BGF on board allowed the company to take a bolder approach to its strategy and take on more acquisitions than it may have without us. We've made very healthy returns on the deal."

Previous funding
BGF backed Solid Solutions in 2016 with an £8m investment. During the firm's holding period, the company acquired software providers Cadtek Systems, New Technology Cadcam, Solid Solutions Innovations and Pentagon, using its own balance sheet and debt facilities. The debt package was provided by Lloyd's Bank.

Company
Solid Solutions is a reseller of Solidworks, the 3D computer-aided design (CAD) package that is owned by Dassault Systems. The company provides software, support and training to engineers, designers and manufacturers across the UK and Ireland. It is headquartered in Leamington Spa and operates from 23 offices across the UK and Ireland, employing more than 230 people.

Founded in 1998, it generates annual turnover in excess of £50m, according to a statement. For 2018, the company reported operating profit of £8.5m from revenue of £51m.

People
LDC – Rob Schofield (director); Richard Whitwell (head of Midlands).
BGF – Ian Downing (investor).
Solid Solutions – Alan Sampson (CEO).

Advisers
Equity – Gowlings (legal); DC Advisory (corporate finance); BDO (financial due diligence).
Vendor – KPMG (corporate finance); EY (financial due diligence); Shoosmiths (legal); CIL (commercial due diligence).
Company – KPMG (corporate finance); EY (financial due diligence); Shoosmiths (legal); CIL (commercial due diligence).

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