Mobeus funds £25.5 million MBO of Inbox Insight
Mobeus has supported the £25.5 million MBO of Inbox Insight, a B2B demand generation agency, through a £17.7 million investment into the business.
Inbox Insight is a technology-focused provider of content syndication and lead generation services. Using a combination of research, content, AI and data science capabilities, Inbox Insight identifies corporate buyers with a verified interest in its client’s service or product, from a combination of proprietary and third-party data sources. From its offices in the UK, US and South Africa, the business serves a diversified and high-quality client base, representing both some of the largest technology and professional services businesses in the world as well as smaller high-growth VC and PE backed challengers.
Founded in 2010, Inbox Insight has grown rapidly, achieving revenue growth at a CAGR of 20%+ over the last five years. Nearly 40% of its c. £14 million revenues are now generated in the US which has shown particularly strong growth in recent years. Growth has been supported by the movement of marketing spend towards online channels, as well as by the underlying growth in the B2B technology industry. The overall addressable market for Inbox Insight is sizeable, with an estimated £2 billion global spend on demand generation in the tech sector with the market forecast to grow at 10% p.a.
The transaction was originated off-market through Mobeus’s relationship with one of the business’s Non-Executive Directors. The deal sees the incumbent MD, Jamie Hendrie, continue with the business supported by a high-quality senior team across the UK and US. The transaction was funded by Mobeus alongside vendor and management rollover, with no third-party debt funding. As such, Inbox Insight is well-placed to execute on its growth strategy involving continued investment in the business’s technology platform, as well as further refinement of Inbox Insight’s data science and analysis capabilities.
The Investment was led by Chris Price and Dominic Draysey, and Justin Maltz has joined the board on completion.
This is the 14th investment from Mobeus Fund IV and takes the Fund to nearly 90% invested by commitments. The successor Fund, Mobeus Fund V, had a first close in September 2021 and will commence its investment period this quarter.
Chris Price, Mobeus Partner, says, “We are extremely impressed by the growth that Inbox Insight has demonstrated to date. Jamie and the team have built a really strong business in an exciting market and we look forward to leveraging the business’s technology base, to continue to drive growth.”
Mobeus was advised by JEGI CLARITY (Buyside Corporate Finance), Gowling WLG (Legals & Legal DD), Plural Strategies (Commercial DD), Azets (Financial DD), Beyond M&A (Technology DD) and Grant Thornton (Tax).