UK SME investor WestBridge Capital has backed the £6m MBO of “hidden gem” Anglia Business Solutions by taking a 43 per cent stake in the company.
Anglia’s six-strong management team acquired the supply chain management business from a family shareholder with support from WestBridge, which paid £2.6m for its stake.
Westbridge said its holding could be reduced under the operation of a management performance mechanism.
The deal will provide Anglia with development capital to fund the migration of its LINKFresh software onto the Microsoft Dynamics AX Platform.
The investment will also be used to fund the development of its international operations, primarily through its US subsidiary, the company said.
Westbridge managing partner Guy Davies, pictured, said, “This is the sort of hidden gem company we like to invest in – established, profitable and with huge growth potential but in need of capital to implement its plans.
“Anglia has exciting plans afoot, not least of which will be growing its presence and market share in the States where food traceability legislation is catching up with Europe.
“This provides the perfect opportunity for the company to grow market share with its suite of Microsoft supported products, which are already tried, tested and proven.”
WestBridge reached its £30m target for its latest SME-focused fund in April after two years on the road.
The firm said it raised capital from private high net worth investors and institutional investors including the South Yorkshire Pension Fund and the European Investment Fund.
Westbridge was formed in July 2008 as part of the buyout of private equity business WestBridge Fund Managers.
The firm says it invests between £1m and £8m in fast-growing, profitable UK SMEs.
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