UK mid-market private equity house LDC has backed the management buyout of Stroma, a provider of regulatory driven compliance services and software applications to the energy and operational efficiency markets.
LDC’s investment will enable the company to both capitalise on ever tightening regulatory requirements and also introduce new software apps to improve customers’ operating efficiency, the firm said.
Based in Castleford, Stroma was established in 2002 by Matt Ferguson, Rob Coxon and Steve Turner.
Stroma Certification operates a number of Government-approved accreditation schemes for energy assessors and installers across domestic and commercial properties and supports this mobile field force with a variety of software apps which assist regulatory compliance and drive high operating efficiencies. Its main software app, RSAP+, is used to submit over 100,000 energy related assessments each month and has a dominant market share in the UK. Stroma Certification has a number of exciting new apps in development which are proven to drive further operating efficiencies for its customers and affinity partners.
LDC investment directors Simon Braham said: “Since launching Stroma in 2002, Matt Ferguson and his team have very successfully driven the evolution of the business from a technical consultancy to a software-led certification provider to the UK energy efficiency industry. Stroma is widely recognised as a high quality training provider that has developed leading software apps that reduce the complexity of reporting and compliance requirements for its users. Stroma’s services and additional apps are expected to be in strong demand reflecting the management and in-house software development team’s deep understanding of the European regulatory and compliance environment which enables them to offer apps, training and services which drive high operational ROI for its customers.”
The deal represents LDC’s second investment in the North of England this year, having backed Warrington-based procurement services business CEL Procurement in March 2014. Previous investments in the technology sector include mobile software business Kirona and energy management business Matrix, which was sold to E.ON Connecting Energies in September 2013.
LDC is targeting to invest up to £500m of new equity in 2014.
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