The transaction provides an exit for LDC, which backed a £16m secondary buyout with a minority investment in November 2017, and the current institutional shareholders.
Funds managed by WestBridge have invested c£29m for a 75% stake in the business.
The buyout was led by Justin Moule (CEO) and Peter Davidson (COO), supported by Andy Bones (finance director), Richard Boston (marketing director) and Dominic Imrie (development director), who have led the business for many years.
Eque2 supplies business management software to more than 2,700 customers in the construction, housebuilding and contracting industries. Revenues have grown significantly over the last four years and it has proven to be exceptionally resilient during the Covid pandemic. The company continues to invest significantly in customer service and product development to allow customers to further integrate and mobilise the commercial and financial aspects of their business to drive efficiencies and ultimately improve profitability.
Peter Barkley, investment director at WestBridge, said: “Eque2 is a very attractive business. The management team is experienced with a proven track record and the company operates in a resilient market that is expected to grow strongly over the next few years as the UK emerges from the economic impact of Covid and Brexit.
“Added to which, Justin and the team have created a business with an excellent set of products, an unwavering commitment to addressing the needs of its customers, a strong sales and marketing team, established recurring income, high customer satisfaction and a clear roadmap to achieve future growth. We are delighted to have been chosen to partner with this top quality, dynamic team as it continues to develop its leading construction sector software.”
Justin Moule, who led the MBO, said:
“We were impressed with the WestBridge team and the dynamic yet pragmatic approach they took to this transaction. I’m confident that our respective strengths herald an exciting future and that with their support, we will be able to further develop our market leading position. We look forward to working with them over the next phase of our journey.”
WestBridge managing partner Guy Davies, added:
“This is our sixth investment from WestBridge II. We are delighted that we have the opportunity to partner with Eque2 as they continue to develop the business and would like to thank Justin and the team for selecting us.”
The WestBridge transaction team comprised Peter Barkley, James MacLeay, Rebecca Sinclair, Guy Davies, Valerie Kendall and Katherine Bond.