LDC sells Kirona shares in £20m deal

LIVING Bridge, the new name for private equity firm ISIS, has bought out some of LDC’s stake in Kirona, an Alderley Edge-based software company.

LDC, which will continue to hold a minority interest, backed a 2011 management buyout at the business which was set up in 2003 by former Oracle executives David Murray and Neil Harvey.

Kirona builds mobile applications used to track goods and people out in the field and connect them to their offices.

LDC has backed expansion into new sectors and the 2012 acquisition of Watford-based software supplier to housing associations Xmbrace. It is thought to have paid between £5m and £10m for its original holding and has sold for £20m. In the year to March the company had a turnover of nearly £8m, up from £1.5m in 2011-12, and employed 70 staff.

The sale is LDC’s seventh exit in the North West in the past year which have generated gains of around £120m and represent a return of 2.7 times the original investment. Other deals include the flotation of NAH for £80m, the trade exit of Matrix to E.ON, and the secondary buy-outs of Forrest, Mountain Warehouse, Ultimate Products, and Metronet. It has also invested £45m in deals such as the management buyouts of Stroma and CEL Procurement.

Kirona’s chief executive David Murray said: “This has been a tremendous period of growth for our business and we see this continuing in the years ahead, especially with the on-going support of a committed team both here and overseas. LDC’s support has been unstinting and we look forward to working with Living Bridge who, alongside LDC, will help us achieve our long-term ambitions for the business.”

Simon Braham, investment director at LDC in Manchester, said: “David and Neil, supported by highly committed teams in the UK and France, have done a superb job in developing and growing the business over the last three years.

“Their strategic vision has been instrumental in creating value and increasing the size of the market opportunities. As ongoing investors, we look forward to seeing Kirona progress and offer both our sincere thanks and best wishes to the team as it continues its growth journey.”

Clearwater International provided debt advice to Kirona’s management.

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