LDC backs Kirona MBO

Sonnie Ehrendal
01 December 2011

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LDC has backed the MBO of field force automation software company Kirona.

The value of the company has not been disclosed.

Investment director Simon Braham told unquote" that LDC fully supports management and its strategy. He noted that the company has experienced strong organic growth and that this will be the main focus for the immediate future. He added that LDC is prepared to invest additional capital to accelerate organic growth opportunities if required.

Braham highlighted that LDC will support company's management with experience, business networking, and strategy. "We're backing the two founders of the business to continue their growth strategy and to take advantage of the clear opportunities within its market" he said, and pointed out hardware compatibility and back-office integration as unique selling points.

He added that the company's cloud solution is in line with current software trends and may attract SMEs who find the traditional upfront licence and support contract model too expensive. The company targets the under-penetrated SME segment of the field force automation market in its core strategy, but also plans to expand internationally.

Debt
The transaction was financed with equity only.

Company
Kirona, founded in 2003, develops software solutions for field force automation. Its end-to-end solution consists of mobile apps, which communicate with back-office systems over the cloud. Based in Alderley Edge, UK, it employs 33 staff and recorded £3m revenue in 2010/11.

People
Investment directors Simon Braham and Jonathan Bell worked on the deal for LDC. David Murray is managing director of Kirona.

Advisers
Equity - The Parthenon Group, Paul Ahern, George Tan (Commercial due diligence); Dow Schofield Watts Transaction Services, Ed Brentnall, Chris Williams (Financial due diligence); Pinsent Masons, Gregg Davison, Andy Phillips (Legal); PwC, Simon Viner, David Burke (Tax).
Management - Clearwater Corporate Finance, Carl Houghton, Andy Strickland (Corporate finance); Gateley, Paul Jefferson, Jemma Bolton (Legal).