ECI reaps 6.1x return on MiQ sale to Bridgepoint

Wahida Ahmed
13 September 2022

Tweet
Facebook
LinkedIn
Google plus
Send to

Mid-market sponsor ECI has sold New York-headquartered MiQ to Bridgepoint, generating a 6.1x money return and an IRR of 47%, Tom Wrenn, a partner at ECI, told Unquote.

Bridgepoint and the data analytics business' management team will continue to focus on international expansions and growing the client base, according to a press release.

ECI backed the business in a primary all-equity deal in 2017, for a minority stake with GP Bullhound advising on the transaction. The GP invested through ECI 10, which is now fully deployed, said Wrenn. He declined to comment on the size of the stake sold to Bridgepoint. At the time of ECI's investment, the founders were the majority owners and ECI was the first investor, he said.

Unquote's sister publication Mergermarket reported in February 2022 that Jefferies was mandated to sell the business. According to the report, MiQ's annual EBITDA was in the range of USD 40m-USD 50m. MiQ had revenues of USD 465m in 2021, of which less than 20% was in the UK, Wrenn sad. It had organic growth of 37% last year, he added.

During ECI's investment period, the business, which has offices in London, Australia, Canada and New York, furthered expanded in North America and opened an office in China and a commercial operation in India. ECI also supported MiQ in appointing CEOs in the regions it has offices in and grew its headcount from 300 to 1,000. The move into China was influenced by the country's burgeoning middle class and a large digital advertising market; it would also be an area of growth for the new investors to support, he said.

ECI typically completes three to five deals a year, said Wrenn. According to a Companies House filing, it is raising funds for ECI 12, however, Wrenn declined to comment on the fundraising.

Bridgepoint is deploying equity via funds including Bridgepoint Europe VI, which held a final close in December 2017 on its EUR 5.7bn hardcap. The vehicle invests in mid-market European companies, providing cheques between EUR 125m-EUR 500m in companies with enterprise values of EUR 200m-EUR 1bn, according to Unquote Data. The GP's latest vehicle, Bridgepoint Europe VII, held a first close on EUR 4bn in May 2022 and is expected to hold a final close in H1 2023, according to Unquote Data.

Company
MiQ was founded in London in 2010 by Gurman Hundal and Lee Puri. MiQ harnesses data, analytics, and programmatic trading to solve business challenges for marketers and agencies. The company turns data into high-performing advertising campaigns and provides real-time insights to drive tangible business change.

People
Bridgepoint – Charles Welham (director).
ECI Partners – Tom Wrenn (partner).
MiQ – Gurman Hundal (co-founder, global executive chairman).

Advisers
Equity – Latham & Watkins (legal).
Vendor – Jeffries (corporate finance); Startegy& (commercial due diligence).