ECI sells CPOMS to PE-backed Raptor

Thoma Bravo and existing investors Ares Capital and JMI Equity made a strategic investment in school security software platform Raptor to back the deal, according to a statement.

Unquote sister publication Mergermarket reported in March 2021 that ECI was close to appointing a financial adviser to lead the sale process for CPOMS. The process was expected to launch after the summer, with an off-market deal being considered as an option.

Mergermarket reported that the company posted EBITDA of around GBP 10m and could be valued at around 15-20x EBITDA. CPOMS was likely to attract UK-based sponsors and US-based trade buyers, sources told Mergermarket.

In April 2021, Mergermarket reported that GCA Altium had been mandated for the sale process.

ECI announced its acquisition of CPOMS in June 2018, deploying equity via ECI 10. The fund held a GBP 500m final close in September 2014 and backed UK-based mid-market businesses with enterprise values of GBP 10m-150m.

During the investment period, CPOMS increased its client base from 6,000 schools to 14,000 schools and now sells its software in 34 countries, ECI said in a statement.

Unquote reported in April 2021 on the dynamics at play for sponsors investing in the education sector. At the time, 10 buyout deals with an aggregate value of more than EUR 700m had been completed in the sector, according to Unquote Data. One market participant told Unquote that 15-20x valuations were becoming standard for education sector assets with a technology focus.

Recent exits in the sector include Tenzing's sale of education safeguarding technology provider Smoothwall in a GBP 75.5m deal that saw the GP score returns of 5.6x, as reported. Further deals include Omers' investment in Partners Group's International Schools Partnership in May 2021, which saw the company valued at EUR 1.9bn.

Company
Founded in 1999, CPOMS is a software that allows school staff to log pupil wellbeing concerns such as behavioural issues, bullying and special educational needs. The software is used by around 14,000 schools in the UK and Europe, as well as in Asia, Africa, Canada and the US. CPOMS is headquartered in Skipton.

People
ECI Partners – John Hayhurst (partner).
CPOMS – John Wild (managing director).
Raptor Technologies – Gray Hall (CEO).

Advisers
Vendor – GCA Altium, Adrian Reed, Paul Lines, Matthew Furness Rupert Sadler (corporate finance); Addleshaw Goddard (legal).

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• Topics
• Exits
• UK / Ireland
• Technology
• United Kingdom
• ECI Partners
• Trade sale