Mobeus generates 40% IRR on Tessella sale
Mobeus VCT Fundraising
Mobeus has sold analytics software services and consulting company Tessella to Altran Group. The French engineering consultancy’s purchase sees Mobeus generate 2.9 x its money and a 42% IRR on the deal, while retaining part of Tessella’s business.
Mobeus originally backed Tessella in 2012, when it invested £5.6m as a combined debt and equity package to back the £16.7m MBO of the business. During its stewardship, Mobeus introduced Dr Steve Curl, a Mobeus Operating Partner, as Chairman. The three and a half-year hold period has seen revenue increase 43% from £18.5m in 2012 to £26.5m forecast for the current financial year.
Tessella was founded in 1980 in Oxfordshire and has become a global business. It opened its first international office in The Netherlands in 2001, and launched in the US in 2003, where it now operates three offices. In 2011 Tessella received the prestigious Queen’s Award for Enterprise in Innovation for its work on preserving the integrity of digital information over long periods of time, irrespective of numerous changes in technology. This data archiving business, called Preservica, has been carved out of the sale to Altran, to be retained and developed by Tessella’s existing shareholders, including Mobeus.
This is Mobeus’s eighth exit through sales to trade buyers and private equity firms in less than two years. The eight realisations have delivered a 3.0 x money multiple for Mobeus-advised clients of £110.5 million in proceeds from £37.0 million at investment cost.
Guy Blackburn, Portfolio Director at Mobeus, commented:
“Our partnership approach to investing has worked exceptionally well at Tessella. Backed by Mobeus, Alan Gaby has led a highly professional management team through a period of sustained sales and profit growth. This success has resulted in the expansion of Tessella and a great return for all shareholders - a winning combination for everyone involved. Mobeus is looking forward to continuing this success story with Preservica, which was demerged from Tessella pre-sale.”
Alan Gaby, chief executive of Tessella, commented:
"Mobeus has proven to be an excellent financial partner, from helping to construct the management buy-out, and over the past three years providing advice and support to Tessella's board. Mobeus has always delivered on their promises and worked collaboratively with management, without ever seeking to unnecessarily control or interfere with operational matters. They have played a key role in Tessella's success. Now the coming together with Altran Group will provide Tessella access to global clients, in new sectors, on an international basis, which will in turn allow Tessella to realise its full growth potential."