Synova invests in Mallcomm in Fund IV's final platform deal

The UK-based sponsor is supporting the company's CEO and founder David Fuller-Watts in an MBO of the company, according to a press release.

The deal is Synova's final platform investment from Synova IV, a source familiar with the situation told Unquote. The fund, which held its final close in 2019 on GBP 365m, invests GBP 10m-GBP 60m in companies.

Mallcomm's remaining shares are owned by management, the source said. Software professional Chris Blaxall will join the board as the executive chairman as part of the transaction, according to the press release.

Mallcomm's management team was introduced to Synova as it began looking for partners to support its planned MBO, the source said. It chose the GP after meeting with an undisclosed number of other potential backers, including software investors, as it was looking for a partner that understands how to grow and scale European software technology businesses into North America, the source said.

Mallcomm, which doubled its user base last year, oversees workflow management and administration for 650 properties across 19 countries in the US, the UK and Europe. Its customers include commercial real estate owners and operators Unibail-Rodamco-Westfield, The Blackstone Group, ECE Group and Savills, according to the press release.

The company has around 30-40 employees and will look to grow its workforce over the coming years. Synova plans to help Mallcomm grow both organically and by sourcing acquisition opportunities in the US, Europe or further afield, the source said.

In July, Synova held a first and final close for its latest vehicle, Synova V, at GBP 875m, surpassing its GBP 750m target, after three months on the road, as reported. The fund will invest GBP 15m-GBP 150m in companies valued between GBP 20m and GBP 250m. The sponsor has not yet completed any investments from the new fund, the source said.

Company
Bury St Edmunds-based Mallcomm was launched around six years ago as an internal software platform within UK-based marketing services group Toolbox. The company serves as the central point of communication between tenants and site operators to manage access, security and sales data collection at multi-tenanted retail sites, including office buildings, shopping centres, train stations and stadiums.

People
Synova – Zac Tsai (partner).
Mallcomm – David Fuller-Watts (CEO).

Advisers
Synova – Alantra (corporate finance), Squire Patton Boggs (legal), Armstrong (commercial due diligence), BDO (financial and tax due diligence); Endava (tech due diligence).
Mallcomm – Cavu Corporate Finance (corporate finance) and Weightmans LLP (legal).

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