August backs secondary buyout at Wax Digital
ONLINE procurement company Wax Digital has changed hands in a secondary buyout deal.
Nova Capital, which has been invested in the Hyde-based business since 2007, has exited and has been replaced by London firm August Equity. Financial terms of the off-market deal were not disclosed.
Wax Digital is a cloud provider of online procurement software employing 65 people. It manages £5bn’s worth of indirect spend for businesses and public sector organisations. Customers include the NHS, leisure firm Center Parcs, automotive giant Nissan and legal fim Eversheds.
The company’s web3 software is deployed via the cloud to 260,000 users in more than 100 countries.
It says the deal with August Equity will help accelerate growth through new products, international expansion and possible acquisitions.
Managing director Paul Ellis said: “This is a win-win for Wax Digital’s existing customers, employees and partners as well as those of tomorrow. In August Equity we have a highly supportive backer who will help us continue to evolve our eProcurement solutions market leadership, focus on customer service excellence and deliver the most intuitive and integrated Source-to-Pay solution.
“August Equity will also help us further develop our international credentials, accelerating our penetration of overseas markets and building our appeal with large multinationals, as well as seeking out targeted acquisition opportunities to enhance our solutions and market presence.”
Co-founder and business development director Daniel Ball added: “We were excited when August Equity approached us because they invest very selectively in UK businesses that have the potential to outperform in their market. It was vital to us that any external investor is there to enhance the Wax Digital business and what we deliver to our customers. We could see that match in August Equity due to the very active role they have had in building success for the other businesses in their portfolio.”
Mehul Patel, director, August Equity, said, “Wax has delivered 30% growth in its recurring revenue and now manages £5bn worth of indirect spend, in a market where the adoption of eProcurement solutions is set to double over the next few years.
“We had met with several companies in this space and Wax Digital stood out as a leader with significant potential. We look forward to working with Wax’s management team to accelerate its growth in both UK and overseas markets, through organic measures and select acquisitions, to create the market leading independent eProcurement business.”