Inflexion reaps 5.6x money in Mobica trade exit

The deal, which was announced in January 2023, will see the GP reaping a 5.6x money multiple, according to a source close to the matter.

The sponsor originally acquired a minority stake in the Manchester-based company in 2015 via Partnership Capital Fund I, which held a final close on GBP 400m in October 2014. The sale marks the seventh exit from the fund as of today.

Inflexion supported investment into sales and software engineering to help drive global operational efficiencies and further accelerate multi-site scalability, according to a press release. Part of the transformation included a build-out of the leadership team and Mobica’s expansion into Germany, which established further its market position in the European automotive embedded software sector, it said.

Mobica's software engineering services is well-aligned to Cognizant's 2,000 client base and key industries – connected devices and digital transformation, silicon and technology platforms, and automotive and intelligent mobility. The acquisition is expected to further strengthen Cognizant's client offerings and position as a strategic partner in enterprise digital transformation, it said, while its presence in Poland is set to enhance the buyer’s growing development teams in Central and Eastern Europe. Cognizant acquired Romania-based Softvision in 2018 and Lithuania-based Devbridge in 2021.

Upon acquiring Mobica, Cognizant will have more than 7,500 associates in Eastern Europe, including approximately 4,500 engineers. It will also add nearly 900 people across Europe and North America, including approximately 550 engineers in Poland, according to a press release from the buyer.

Inflexion is fundraising for its Inflexion Partnership Capital Fund III, according to Unquote Data. The vehicle, which was registered in August 2022, is set to follow its predecessor's strategy, dedicated solely to minority investing.

The sale of Mobica marks the second exit for Inflexion funds in 2023, which follows nine exits completed last year, collectively returning over GBP 1.6bn of proceeds. The firm sold UK-based luxury travel business Scott Dunn to trade in January, for an enterprise value of GBP 121m, Unquote reported. The deal valued the company at 9.6x its EBITDA for the 12 months ending 30 June 2023.

Inflexion declined to comment.

Company
Mobica provides talent as a service across the full software development cycle, with core competencies in development, implementation, testing and deployment of embedded software and a specialisation in clients' strategic internal research and development projects. The Manchester-based firm operates out of the UK, Europe and the US and counts blue-chip clients among its customer base including Google, Arm, Dyson, Meta, BMW, Samsung and Vodafone.

People
Inflexion − Catherine Richards (partner), Olivia Lonsdale (investment executive).
Mobica − Sam Kingston (CEO).
Cognizant − Annadurai Elango (executive vice president of Cognizant's Core Technologies and Insights).

Advisers
Vendor − Oakley Advisory, now part of Houlihan Lokey (corporate finance); DWF – (legal & legal due diligence); KPMG (financial due diligence).

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• Inflexion Private Equity
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