Accel-KKR, a global technology-focused private equity firm, announced that it has signed a definitive agreement to sell Kerridge Commercial Systems Ltd, an ERP and business management software provider for distributors, wholesalers and related trades, to CapVest Partners LLP, an international private equity firm.
KCS, headquartered in Berkshire, England, provides software to over 32,000 customers across the world in a number of vertical markets including building materials and supplies, automotive, industrial, electrical, food and beverage, pharmaceuticals, rental equipment and other distributive trade verticals. The company has more than 1,100 employees across 21 offices globally.
Accel-KKR invested in KCS in 2015. Over the course of Accel-KKR’s investment in KCS, the company grew its overall revenue base more than four-fold, accelerated its organic revenue growth rate, rapidly expanded its percentage of revenue that was recurring in nature, and significantly expanded its operating margins. In addition, KCS completed several follow-on acquisitions that expanded its business into new geographies including North America and Continental Europe, such as the take-private acquisition of US-based MAM Systems in 2019.
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Tom Barnds, Co-Managing Partner at Accel-KKR, said, “We are very proud of our partnership with Ian Bendelow and the KCS management team. They achieved tremendous results and created a market leader in our eight years of working together. We wish them nothing but the best as they continue their growth with their new private equity sponsor.”
Ian Bendelow, CEO of KCS, said, “Accel-KKR has been an exceptional partner to our team, as we have established KCS as the premier global ERP and business management software provider to the distributive trades. As we begin a new chapter with CapVest, we thank Accel-KKR for helping us accelerate our journey.”
Maurice Hernandez, a Managing Director at Accel-KKR who heads the firm’s London office, said, “Accel-KKR has completed over 70 investments and acquisitions of software companies in Europe since its inception, making the firm one of the most active private equity software investors in Europe. We expect to maintain an active investment pace in the years to come, helping companies across Europe accelerate growth, build leadership positions, and enter new markets.”
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Recent Accel-KKR platform investments in Europe include: Basware, a Finland-based global accounts payable and invoice automation software platform, in a take-private transaction; PayProp, a UK-based processor of rental payments for the property management industry; and Symfonia, a Poland-based provider of accounting, payroll and ERP software solutions. Accel-KKR’s past exits of software platform investments in Europe include Episerver, now known as Optimizely, a digital experience software platform; JAGGAER, one of the world’s largest independent spend management software companies; and One.com, one of Europe’s leading providers of domain names and web hosting solutions.
KCS was advised by Arma Partners and Stifel (financial advisors), Kirkland & Ellis and Addleshaw Goddard (legal), EY (financial and tax) and PwC (commercial and technical).
CapVest was advised by Evercore (financial advisor), Willkie Farr & Gallagher LLP (legal), Kirkland & Ellis (financing), KPMG (financial and tax), EY-Parthenon (commercial), West Munroe (technical due diligence) and Marsh (insurance).
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