Detailed below are some of the most notable and recent exits from Midven's portfolio
Dynamic Change
Dynamic Change was formed in March 2000 to develop a web-based performance management software tool. Performance Accelerator is an online integrated corporate governance solution that allows organisations to manage and monitor their business objectives, risks, performance indicators, compliance reporting, financial targets and regulatory obligations. Dynamic Change is the market leader in its chosen market; the NHS.
The Company was originally backed by an investment from the HSBC fund in 2002, at a time when it had just two customers, with a follow-on investment by the Advantage Growth Fund in August 2003. Having grown the business to having 121 customers and being highly profitable an exit was achieved in May 2010 through a trade sale to AIM-listed Allocate Software for £9m. Midven achieved an 8 times return on its investment from the Advantage Growth Fund which could grow to 14 following receipt of deferred consideration.
"We worked closely with Midven over the eight year period since their investment and their financial and strategic input has enabled us to grow the business significantly. The strategic fit between Allocate and Dynamic Change was excellent for both customers and staff and the timing were right for the company to move into the next stage of its growth strategy as part of a larger group."Mil Milojevic and Hugh Ashley, founder and directors of Dynamic Change
Midland Industrial Glass is one of the largest independent, specialist glass processors in the UK. The Advantage Growth invested in MIG in June 2005, supporting the management team in a buy-out from the retiring owner. At the time the company was in financial difficulty and on the verge of administration. The funding provided by the Fund provided the necessary working capital to enable the management team to turn the business around.
Through an initial focus on production efficiency and product quality followed by customer base expansion and factory investment the team created a highly profitable business. Despite the recession, increasing competition from cheap imports and rapidly rising material prices the company continues to perform strongly through a focus on high quality short production runs and excellent customer service.
In December 2011 a private equity backed Secondary Buy-out of the business provided an exit for the Advantage Growth Fund and the semi-retiring Production Director. The transaction generated an overall 7 times cash multiple return for the Advantage Growth Fund, representing an IRR of c. 46%.
MVI, established in 1991 developed 'out of the box' real time shop floor data capture and performance management solutions, based on 15 years working with customers including Coca Cola, Pfizer, Gillette and Toyota on their continuous improvement efforts. The software provided a unique competitive edge resulting in rapid increases in productivity and quality compliance for its users. With investment from the Advantage Growth Fund the company's growth spread to the USA and Canada where the product was identified by analysts as 'best of breed', resulting in a rapidly growing customer base of top transatlantic brand corporations and an ultimate exit by way of trade sale to US based CDC Corporation with 12 months of Midven's initial investment.
The Exit generated and IRR in excess of 90% for the Advantage Growth Fund.
"Midven introduced John Caines who joined the board as Chairman following the investment. As a serial software entrepreneur John provided the board with extensive assistance and experience of the trials and tribulations of a growing software business." Mark Sutcliffe, Managing Director MVI Technology
Occam Systems Limited is a leading supplier in the UK of software for managing student accommodation and events for universities. Occam's' software handles everything from receiving students' applications for accommodation, issuing contracts and managing rooms, through to collecting rent and debt management. The software has grown to manage events, meeting rooms, catering and audio visual services.
A profitable exit was achieved by Midven and the business founder in November 2010 following a Management Buy-out of the business for an undisclosed sum, led by the incumbent Sales Director
Coventry based Scriptswitch is the leading provider of software designed to support GPs with patient safety information, drug switch recommendations and dosage optimization information at the point or prescribing. Midven invested in 2003 at a time when the company was still largely focused on product development, had minimal sales and was operating without a fully fledged management team.
Scriptswitch was sold to United Health UK; part if United Health Group Inc., a US quoted global health and wellbeing company in October 2009. The transaction generated cash multiple return of over 35 times and an IRR in excess of 100% for Midven.
Its success in boosting patient safety as well as driving cost savings on prescribed drugs meant that at the time of the transaction the company's software was used by more than 60% of Primary Care Organisations in the UK. Annualised savings to the NHS as a result of decisions made by GP's supported by Scriptswitch were set to exceed £20m at the time of exit.
The sale marked the end of a very successful period for Scriptswitch in which it had been awarded a Queens Award for Enterprise in the Innovation category and Mike Washburn, CEO had been announced as the BVCA (British Private Equity and Venture Capital Association) 'Venture Capital Backed CEO of the Year'.
"Midven supported the team in helping us develop and build the business over recent years. I can look forward to the next phase of our development, confident that we have built a robust and scalablebusiness". Mike Washburn, CEO Scriptswitch
