Isis makes 2.8x money on MLS sale

Isis reaped a 2.8x money multiple and 20% IRR on its investment – the GP had bought the business in 2006. The sale process was managed by KPMG on behalf of MLS.

MLS will continue to operate on a stand-alone basis, with support from Capita to invest in new products and systems following the transaction.

Previous funding
Isis backed the £8m secondary management buyout of MLS from Montagu through its Baronsmead VCTs in 2006. HSBC provided debt on the deal. Montagu had acquired the company for £2.5m two years prior.

Since then, MLS's turnover doubled to reach £5.3m in the last financial year, according to the GP. Headcount also nearly doubled, from 33 at the time of the 2006 buyout to around 55 today. Under Isis's ownership, MLS focused on launching new products and expanding its international footprint.

Company
Founded in 1982, MLS is a provider of library management systems to the education sector, with a historical focus on the UK market. The business aims to develop solutions enabling students, parents and teachers to improve reading and literacy.

People
Bevan Duncan led the deal for Isis. Andy O'Brien is managing director of MLS.

Advisers
Vendor, management – Gateley (Legal); KPMG Manchester (Corporate finance).

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