Tenzing backs MBO of VIPR

Greg Gille
27 October 2020

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Tenzing has invested in the management buyout of VIPR, a UK-based provider of insurance software.

Tenzing secured a majority stake in the business in an unleveraged deal, the GP told Unquote. The terms of the transaction remain undisclosed, as are the company's financials.

The deal was sourced via an auction run by Grant Thornton on behalf of the vendors, it said. The GP had been working on the deal since June.

VIPR founders Bob and Rick Brown will be stepping back from the business, with Tenzing backing the existing management team, led by CEO Paul Templar and chief operating officer Stewart Williams.

Tenzing is likely to back the companies in making acquisitions, in addition to supporting organic growth, with the latter expected to provide the core returns, it said. VIPR aims to continue growing its UK presence and expanding its international footprint. Tenzing said it would invest in sales and marketing, product development and internationalisation.

VIPR is the ninth investment for Tenzing's debut fund, which closed on £200m in January 2017 and was 75% deployed as of February 2020. Tenzing I has a generalist remit and targets buyout investments in UK businesses valued up to £75m.

At the end of September, Tenzing announced it had acquired HR and payroll companies Cintra, Trace Payroll Services and UnaTerra.

The firm recently closed its second-generation fund on its hard-cap of £400m after nine weeks of fundraising in what was an entirely virtual process. That vehicle has yet to begin deploying capital.

Company
Established in 2009, VIPR's software is designed to standardise and validate the information contained in insurance industry reports. Its clients include insurers, brokers and managing general agents, with VIPR claiming its products help these players to capture cost savings, improve data analysis and increase profitability.

VIPR employs more than 40 staff and has grown at 30% over the past 12 months, according to Tenzing.

People
Tenzing – Christian Hamilton (founder, co-managing partner).

Advisers
Vendors – Grant Thornton (corporate finance).