Optionis completes secondary buyout as MML Capital invests
PRIVATE equity firm MML Capital Partners has backed a secondary buyout at Warrington SME support service provider Optionis, a deal which sees Inflexion sell its stake.
Financial terms of the transaction were not disclosed, but it sees the Optionis management team led by chief executive Rob Crossland, raise its ownership stake to more than 50%.
The Optionis group comprises employment services provider Parasol, small business and contractor support specialist ClearSky and cloud-based-sales performance management software Silverline.
Inflexion invested in the business, then trading as Parasol, in 2006.
Optionis employs around 250 staff across sites in Warrington, Greater Manchester, London, Poole and Dorchester. This number is expected to reach 350 by March 2016 after the investment.
Group turnover for the current financial year is forecast to be £335m.
MML, which has offices in London, New York and Paris, has invested than $2bn invested across 12 countries during the last 25 years.
Optionis chief executive Rob Crossland said: “As a management team we are excited to be re-investing in, and emphasising our commitment to, the group.
“This deal will support our goal of sustainable growth over the long term, as we look to establish ClearSky as the fixed-fee support provider of choice for Britain’s small businesses, and leverage Parasol’s expertise in workforce management to grow that business.
“MML is a world-class investment firm, with a track record of partnering with thriving companies and supporting their growth ambitions. We are delighted to be teaming up with them.”
Derek Kelly, managing director at Optionis, added: “There are 4.8m SMEs in the UK, accounting for 99% of all businesses, so the growth potential for a support provider with the necessary expertise and a unique offering is huge. I believe we fit the bill, which is why we’re forecasting significant revenue and volume growth in the coming months and years.
“I would like to reassure our existing clients, partners and employees across all businesses within the group that they will see no changes to our service, ethos or pricing structure as a result of this deal. The investment is designed to support our growth plans, pure and simple.”
Richard Mayers, investment director at MML, said: “We are very pleased to back this exceptional management team led by Rob and Derek, and are hugely excited by the opportunities for Optionis as an outsourced business services provider to the SME sector.”
EY, Taylor Wessing, Ward Hadaway, Grant Thornton and DWF advised on the deal. Bank financing was provided by HSBC’s Manchester-based Leveraged Finance team.
