Telematics specialist planning for growth after leveraged buyout

Scorpion, a Chorley-based telematics specialist in the automotive sector, has completed a leveraged buyout.

It designed, manufactures and supplies an IP-owned product range to a multinational client base.

The corporate finance and tax teams at Cowgills advised the company on its external fund raising, devising the transaction structure for the deal.

Having worked with the shareholders of Scorpion for many years, Cowgills partner James Kennedy, corporate finance manager, Richard Hunter and tax partner Georges Daubney completed the deal for an undisclosed sum this week.

The arrangement, which sees previously minority shareholder, Mark Downing, increase his shareholding to a majority at Scorpion, will create significant opportunities for the company to continue its growth.

James Kennedy said the deal now provides the platform for significant value creation.

He said: “Scorpion is one of the leading telematics specialists with over 100,000 subscription trackers underpinning a high quality of earnings.

“The strong management team are confident in delivering great success in the coming year and we look forward to continuing our very successful relationship with them.”

Mark Downing, chief executive at Scorpion, thanked the Cowgills team, saying: “The expertise, dedication, and unwavering commitment displayed by the corporate finance team were instrumental in ensuring the success of this intricate transaction.”