£3m MBO secures Lanner Group
A MANAGEMENT buyout of Redditch-based software firm Lanner Group has been backed by NVM Private Equity in a deal advised by Pinsent Masons and Wragge & Co.
NVM backed the £3 million MBO of Lanner from 3i Group, who currently hold a minority stake in the company. Lanner is a leading provider of process simulation software for blue chip organisations worldwide. The current management team, which includes Ken Briddon as chairman, joined the business in 2006 and has improved the performance of Lanner as a software products business.
Lanner Group works with partners such as IBM and IDS Scheer. End users include the likes of Ford, GSK and British Nuclear Group.
James Arrowsmith, who led the deal for NVM, said: “The team at Lanner has done a great job over the past four years in refocusing the business around some market leading products and now has a fantastic platform for growth, based around both a growing demand for simulation and optimisation software and expansion of the product range. We look forward to working with CEO David Jones and the team to continue to drive the business forward.”
Lanner’s simulation software enables business managers to model, analyse and optimise processes to rehearse and aid decision making. Lanner works across many industry sectors including the police and public sector, energy, defence, aerospace, automotive, general manufacturing and healthcare.
Lanner was established in 1996 following the MBO of the simulation software division of AT&T backed by 3i. The company employs 35 full-time staff across its Redditch base and subsidiary USA and France offices.
David Jones, CEO of Lanner Group said: “This backing follows an incredible year for Lanner – we have had an excellent business performance in 2009 and NVM will help us capitalise on this to accelerate growth moving forward.
“Businesses are now recognising the benefits and savings that simulation can bring. It has been ranked as one of the top 10 most important strategic technologies for 2010 by leading analyst house Gartner. The reduction in risk and leaner, more efficient operations that simulation enables will continue to open up opportunities for Lanner. We are very happy to secure the support to enable Lanner to develop to its full potential.”
Eddie Harding of ICON Corporate Finance, who advised management on the buy-out, said “we are delighted to have attracted investment for the deal from NVM who have a first class track record of backing businesses in the tech sector. This transaction will give Lanner, who’s business has been transformed by management since the reorganisation in 2006, an ideal base from which to dominate the simulation software market which has become increasingly important to enterprises implementing new systems and processes”.
The legal advisers were Ian Piggin at Wragge & Co (NVM) and Paul Batchelor at Pinsent Masons LLP (management). Financial due-diligence was undertaken by Baker Tilly in Bristol and commercial due-diligence was completed by Armstrong TS.
