Livingbridge buys Quorum; Maven reaps 6.5x

Harriet Matthews
05 January 2022

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Livingbridge has acquired Edinburgh-based cybersecurity business Quorum Cyber; the deal sees existing shareholder Maven realise a money multiple of 6.5x for its venture capital trusts (VCT).

Maven will continue to hold a minority stake in the business.

Maven VCTs, alongside Scottish Enterprise (previously the Scottish Investment Bank), made a GBP 2.7m investment in Quorum Cyber in June 2020. The funding was intended for the company's future growth, including investment in sales and marketing, as well as product innovation. The company also said in a statement issued at the time that it intended to expand its presence in the Middle East, Australia, South Korea, and North America.

During the investment period, Quorum increased its recurring revenues and headcount fourfold, Maven said in a statement. The company also expanded its operations to the US and appointed executive functions including finance director and chair.

Livingbridge's investment includes growth capital to take advantage of growth opportunities in the cybersecurity sector, the GP said in a statement. Livingbridge is currently deploying equity via vehicles including Livingbridge Enterprise 3, which held a final close in October 2019 on GBP 334m. The fund invests in UK-based SMEs with enterprise values of up to GBP 50m, according to Unquote Data.

The GP's previous cybersecurity investments include Adarma, which it acquired from ECS Security in June 2019 via Livingbridge 6, and TitanHQ, which it acquired in June 2020 via Livingbridge Enterprise 3.

Company
Founded in 2016, Edinburgh-headquartered Quorum Cyber provides managed cybersecurity services via Microsoft Security Technologies with the aim of protecting businesses from cyberattacks. It serves companies in the UK, Europe, the Middle East and the US. Quorum Cyber employs 70 staff, according to LinkedIn.

People
Livingbridge – Matthew Jacobs (partner).
Maven – David Milroy (partner); Alan Robertson (investment director).
Quorum Cyber – Federico Charosky (CEO).
Scottish Enterprise – Kerry Sharp (director).

Advisers
Equity – Results (corporate finance); BDO (financial due diligence, tax); Fairgrove Partners (commercial due diligence); Grant Thornton (tax); Shoosmiths (legal).