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Encore Capital makes 4x return from exit of UK digital marketing company Pure360

8 Jul 2013

UK private equity firm Encore Capital has sold digital marketing software company Pure360 for £10m.

The deal, supported by Scottish Equity Partners and Investec, generated an investment return of four times money multiple and an IRR of 47 per cent.

Pure360 works with customers including Hackett, Innocent drinks, Virgin, Rightmove and Tetley.

Encore acquired the business in March 2009 and built out the senior management team. The business has since doubled in size and has simultaneously invested over £2m in infrastructure and product development.

Encore owned a majority equity stake and worked with Harry Meikle, former group managing director of Experian/QAS as chairman. 2009.

Shirin Gandhi, Partner at Encore, said: “Pure360 is clear demonstration of what Encore is good at. Having identified a future growth sector, we approached the business at a time management were seeking a partner capable of transitioning them away from an owner-managed business to one that could achieve and maintain a leading position in a fast growing market. Our track record of success in similar situations gave them comfort that Encore was the right partner for them.

The exit of Pure360 follows the sale of portfolio companies Probikekit.com to The Hut Group and Forward Valeting Services to Motorclean.

In addition Encore recently acquired Stagecoach Theatre Arts, which operates the UK’s largest network of part time performing arts schools for children, and TSC Inspection Systems, a manufacturer of inspection systems for the oil and gas sector.

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