SEP sells Dotmatics to Insight Partners' Insightful Science

The companies will continue to operate independently until the deal is closed, which is expected in Q2 2021, according to a statement.
The combined companies will generate revenues of more than $100m.

The deal sees Dotmatics valued at around $690m (£500m), Bloomberg and the Times reported.

Unquote sister publication Mergermarket reported earlier in March 2021 that Jeffries had been mandated for Dotmatics' sale process. The company generates EBITDA of £5m and posts £35m in revenues, the report said. The report said the company was expected to be of interest to trade buyers, which were likely to pay higher valuations than sponsors.

SEP invested in Dotmatics in October 2017 via SEP V. The vehicle held a final close in November 2016 on £260m and made investments of up to £20m. At the time, Dotmatics reported revenues of £12.8m and EBITDA of £2.9m. In June 2020, it acquired Massachusetts-based laboratory instrument data flow software BioBright.

Company
Founded in 2005 and headquartered in Bishop's Stortford, Dotmatics is a software platform for data reporting and analysis for use in scientific laboratory settings. Its software is used by clients in sectors including pharmaceuticals, biotechnology, and food and beverages.

In 2019, the company generated revenues of £26m, compared with £21.5m in 2018, according to the company's latest financial statements. Dotmatics employs 300 staff.

People
Scottish Equity Partners – Keith Davidson (partner).
Dotmatics – Steve Gallagher (co-founder, CEO); Alastair Hill (co-founder, chief investment officer).
Insightful Science – Thomas Swalla (CEO).
Insight Partners – Jeff Lieberman (managing director).

Advisers
Vendor – Jeffries (corporate finance).
Acquirer – Willkie Farr & Gallagher (legal); Evercore (corporate finance).

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