Buyout at Manchester software firm Eque2 backed in £16m deal

Mid-market private equity firm LDC has backed a multi-million pound management buyout at construction software company Eque2.

The £16m investment will enable Manchester-headquartered Eque2 to accelerate its growth strategy and buy-and-build programme.

The buyout was led by Eque2 executive chairman Richard Beaton.

As part of the deal, LDC has taken a significant minority stake and provided an exit for private equity firm Livingbridge, which first backed Eque2 in 2013.

The software company’s first move with the eight-figure boost will be the acquisition of payroll and HR technology provider Miracle Dynamics.

Richard Beaton said: “We have achieved significant growth over the last four years, but in order for us to maintain a market leading position it is vital we expand our offering further and capitalise on opportunities in different markets.

“With the financial firepower and support of LDC we’re confident that we can establish ourselves as the construction industry’s leading provider of specialist business management software and the Miracle Dynamics acquisition is an exciting first step on this journey.”

For LDC, investment director John Clarke led on the deal alongside Jonathan Bell, head of the firm in the North West.

Both joined Eque2’s board as non-executive directors alongside Richard Vincent, who has over 17 years’ experience in growing software businesses.

John Clarke commented: “Eque2 has become the leader in its field by offering exceptional solutions, the highest service standards and having an unwavering commitment to addressing the needs of its customers.

“For us, however, the deal is not just about the strength of the business and the market opportunity, but partnering with and supporting the management team to achieve their growth strategy.”

Pinsent Masons and KPMG advised LDC on the investment. Clearwater International acted for Eque2. Yorkshire Bank provided banking facilities.