Birmingham advisers work on £4m growth deal for events firm
A MIDLANDS firm supplying state-of-the-art audio visual and IT equipment, interactive software and temporary network infrastructure to the events industry has undergone a major cash injection in a deal part advised out of Birmingham.
DB Systems, based in Tewkesbury, supplies trade shows, large exhibitions and live events in the global events market.
In order to assist the firm with its growth ambitions, equity investor WestBridge Capital arranged a £4m finance package. Ian Curtis and Sabial Hanif at Transcend Corporate in Birmingham assisted in the process by introducing WestBridge.
Founded in 1994, by David Bulley, who continues as CEO, DB Systems has undergone rapid expansion in recent years, with the associate growth in workforce.
The business now has annual revenues of £8m and 63 employees. It supplies equipment to some of Europe’s best known events and venues, including Farnborough International Air Show, Mobile World Congress Barcelona and Aberdeen Exhibition & Conference Centre, as well as technical support to trade show organisers across Europe, the Middle East and Asia.
Bulley said: “This is a very exciting time. I remain passionate about what we do and after years of carefully nurturing this business into a respected and trusted supplier, we now have a significant capital injection to help us realise our future growth potential.
“Transcend Corporate have been a huge help in introducing and delivering a complex package of equity and debt finance. Their willingness to roll up their sleeves and help overcome the numerous hurdles as the deal came together has been indispensable.”
Ian Curtis said: “We are delighted to have provided the shareholders of DB Systems with a solution which will provide a fabulous platform for its future.”
WestBridge Capital partner James Wakefield, who worked on the transaction with colleague Sandy Smart, said: “We believe DB Systems’ market leading position provides a springboard for significant future growth. The additional capital will boost business development and allow investment in the latest audio visual equipment which will enable the business to accelerate its expansion plans.
“Despite a global market value of $27bn, the sector is very fragmented so we will also be considering value-enhancing acquisition opportunities. Working closely with David and the management team, we’ve already identified a number of key strategic opportunities for the business over the next few years.
“The structure of the transaction should prove mutually rewarding. It means David will remain very much hands-on in the business, while the management team he has built around him will also have an ownership interest.”
Term debt of £1.25m has been provided by NatWest. Grant Thornton undertook financial due diligence. Capital Law advised WestBridge Capital, while Squire Patton Boggs advised David Bulley. CIL undertook the market due diligence review.
