Datapath Ltd (United Kingdom) - Oct 2007

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01 October 2007

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Foresight Group has backed the management buyout of Datapath Ltd, a specialist supplier of technology for large screen video displays, in a deal that values the company at £12m. Foresight invested £3m of equity from its VCT 2, VCT 3 and VCT 4 funds to take a significant minority stake in the business, with management reinvesting to retain a majority holding and NatWest providing debt facilities through its Structured Debt Solutions team. Additional financing was provided by private investor Simon Hunt, who has taken a small equity stake and will become the Datapath chairman. The new investors are planning to strengthen the management team and drive organic growth. The transaction was sourced through Cooper Parry, which acted on behalf of the company.

Company

Derby-based Datapath develops and supplies hardware and software products for large screen displays known as ‘videowalls’. The company’s equipment is used in more than 50% of all videowalls globally, making it the market leader in the sector with revenues of nearly £10m and an annual growth rate of 30%. Founded in 1982, the business currently employs 27 staff and is profitable.

People

Donald Maclennan led the deal for Foresight, while Datapath co-founders Steve De-Ath and Tony Jones represented the company. Guy Middleton handled the transaction for NatWest.

Advisers

Company - Browne Jacobson, (Legal)Company - Cooper Parry, Roy Farmer, Sally Saunders (Corporate Finance)Debt - Flint Bishop, (Legal)Debt - Tenon Corporate Finance, (Corporate Finance)Equity - Martineau Johnson, Kavita Patel (Legal)Equity - Tenon Corporate Finance, (Corporate Finance)