October 25, 2016 | Deals

GCA Altium advises Mitrefinch on major investment from LDC

GCA Altium acted as exclusive financial adviser to Mitrefinch, one of the UK’s leading developers of human capital management (HCM) software, on its major investment from private equity house LDC.

Headquartered in York, Mitrefinch provides an integrated suite of HCM software spanning time and attendance, rostering, HR and payroll. Its products are helping more than 3,500 organisations to reduce cost whilst improving efficiency and compliance. Customers include SMEs, mid and large corporates, public bodies, charities and universities, with brands including L’Oréal, Nestlé, Amec Foster Wheeler, DFS, the Forestry Commission and the Scottish Government.

Human capital management software is a $1.8bn global market that is estimated to be growing at more than 10 per cent per annum. Following LDC’s investment, the firm plans to expand its nascent overseas business in Canada, the US and Australia, as well as developing new and existing relationships in its more established UK business. It also plans to commit significant investment to new product development to continue expanding and improving its suite of products, including its software as a service (SaaS) offering and its rostering product suite.

Richard Ibbett, Investment Director at LDC, said: “Debbie and the team have built an enviable market position for Mitrefinch, with a high-performing suite of integrated products and a loyal, fast-growing customer base. With significant additional capital to invest in the business, a high quality team and a clear growth strategy, it has a real opportunity to achieve a dominant position in a growing, consolidating and globalising marketplace.”

Debbie Guppy, Mitrefinch CEO commented: “This is an exciting time for the business as we develop our product suite further with the objective of becoming the leading provider of integrated, SaaS-based human capital management software in the market.  We were closely advised by the team at GCA Altium, and Adrian and the team assisted us greatly throughout the process with their wealth of experience and professionalism. They were great to work with and helped us to secure the right investor for the business.”

Andrew Simpson, Mitrefinch founder added: “I’m delighted – we have achieved a great result and in LDC we have found a great home for the business. The GCA Altium team were outstanding from start to finish – I can’t speak highly enough of their patient and consultative approach, along with the advice and support they provided.”

A Manchester team at GCA Altium, led by managing director Adrian Reed, director Dom Orsini and associate Jon Stead, advised the shareholders of Mitrefinch on the deal. Reed said: “Mitrefinch is a fantastic business with significant growth prospects, and in LDC, Debbie and her team have found the ideal partner to help them deliver this. It has been a pleasure working with Andrew Simpson, Debbie Guppy and the wider Mitrefinch management team, and I’m certain that the business will continue to achieve great success in the future.”

This is the latest in a series of mid-market tech deals led by GCA Altium, following transactions for Ascribe, TotalMobile and Guestline in the enterprise software sector. Most recently, the firm completed the sale of P&I, an international HR cloud software vendor, to global investment company Permira in September 2016 – one of the largest ever software buyouts in Germany.

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