Kirona snaps up rival Xmbrace
PRIVATE equity-backed business software provider Kirona Group has boosted annual sales by around £3m after buying a key supplier to the social housing sector.
The Alderley Edge-based company, which sold a stake to LDC in November 2011, expects the acquisition of Xmbrace – part funded by the private equity house – to help it grow sales to around £7m by the end of March 2013.
Watford-based Xmbrace is a market-leading provider of scheduling software to the social housing sector.
The deal represents is Kirona’s first acquisition since LDC’s investment.
Kirona has 33 staff and develops field force automation software solutions for a wide range of industries. It has more than 220 customers which use its software daily.
Xmbrace is well-known to its new owner – the 35-strong company has been a strategic partner since 2006.
Kirona’s co-founder and managing director David Murray said: “Having partnered with Xmbrace since 2006, we fully recognise the market leading nature of its software, as well as the business’ driven management team, unrivalled presence in the social housing sector and significant technical expertise.”
“The deal will allow us to work with partners of both businesses to provide differentiated, dynamic scheduling systems, and integrated support services which deliver even greater return on investment for our expanding client base.”
Simon Braham, investment director at LDC added: “Xmbrace’s leading market position and highly respected team, combined with its existing partnership with Kirona, make it the ideal acquisition. The deal will create a number of technical and sales synergies as a result of the two companies’ complementary propositions and target sectors.”
Xmbrace’s founder and chief executive David Todd, and operations director Richard Winch are remaining with the enlarged business.
The Manchester office of Clearwater Corporate Finance advised Kirona on the deal.
