August exits Planit in trade sale

Greg Gille
03 October 2011

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August Equity has sold UK-based software business Planit Holdings to Vero Software, a portfolio company of US-based VC Battery Ventures.

Deal value remains undisclosed, but the exit allowed August to reap a 33% IRR on its overall investment in Planit. This is the eighth exit for August's AEP I fund.

The Harris Williams-run sale process attracted both corporate and private equity bids from across Europe and the US.

Vero Software is a supplier of specialist software for the design and manufacturing of applications for plastic injection moulds, sheet metal stamping dies and electrode production across a range of industry sectors. Battery Ventures took the company private for £9.37m in 2010.

Previous funding
August Equity acquired Planit in a £40.9m public-to-private transaction in 2006. The investor provided £14.2m of equity, accompanied by senior debt supplied by HSBC, and secured a significant majority stake in the company.

The main goal for August in the early years of the investment was to reorganise and streamline a group of eight different businesses. The GP also encouraged the sharing of best practices and R&D efforts across the group.

Planit sold its retail division, Fusion, to Canada-based 20-20 Technologies for £19m in 2008. The move enabled Planit to focus on the faster growing CAM market.

Company
Founded in 1983, Ashford-based Planit develops and supports software and services for computer-aided manufacturing (CAM) and computer aided design (CAD), specifically targeting the woodworking, cabinet-making, engineering and stone industries.

Planit's turnover remains confidential, but the business is said to have been growing at a double-digit rate for the past couple of years.

People
Ian Grant led the deal for August Equity. Bryan Price is CEO of Planit.

Advisers
Vendor – Harris Williams, Thierry Monjauze, Red Norrie (M&A); Shoosmiths, Sean Wright (Legal); KMPG, Barry Carter (Financial due diligence); Grant Thornton, Jenny Batchelor (Tax).
Management – Shoosmiths, Sean Wright (Legal); HMT Corporate Finance, Peter Barrand (Corporate finance).