Bowmark acquires Totalmobile from Horizon

Eliza Punshi
26 October 2020

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Mid-market private equity firm Bowmark Capital has acquired UK-based Totalmobile, a developer of field service management software, from Horizon Capital.

Sister publication Mergermarket reported in February this year that Horizon was on track to exit Totalmobile later this year. Sources told the publication that the company could fetch an enterprise value of more than £50m, based on recurring revenue of £12m.

Bowmark is currently investing from its sixth fund, Bowmark Capital Partners VI, which held a final close in January 2019 on £668m. The vehicle is expected to make 10 platform investments and provide equity cheques of £50-70m.

Bowmark will provide additional funding of £100m to fund the company's add-ons acquisitions.

Horizon said in a press release that under its five-year ownership, Totalmobile had fully transitioned to a software-as-a-service model, increased its recurring revenues to more than 70% and completed four strategic acquisitions, including Technology Business Solutions (TBS), CloudDialogs, Lone Worker Solutions, and Global Rostering System.

The exiting GP said in a statement that its revenues had increased by 45% per annum, and that growth continued throughout 2020 despite the global pandemic. It forecasts revenues of £26m till December 2020.

According to its annual report, Totalmobile generated revenues of £12.9m and EBITDA of £3.1m in 2019.

Previous funding
In 2015, Horizon, formerly known as Lyceum Capital, acquired Totalmobile from MMC Ventures, and deployed equity from its £330m third fund.

MMC Ventures, which had backed Totalmobile since 2001, said the exit had enabled it to return 11x money to its investors.

Company
Founded in 1985 and based in Belfast, Totalmobile provides workforce management software to businesses. Its field service management software serves 700 clients across the public services, property, facilities management, transport and infrastructure sectors. The company employs 220 staff, and generated revenues of £12.9m and EBITDA of £3.1m in 2019.

People
Bowmark Capital – Stephen Delaney (partner).
Horizon Capital – Jeremy Hand (chairman).
Totalmobile – Jim Darragh (CEO).

Advisers
Company – Deloitte (M&A); Pinsent Mason (legal); Burness Paul (legal); Graph Strategy (commercial due diligence).