UK-based mid-market firm Inflexion Private Equity has sold CMO to US-headquartered software provider Mitratech, which is backed by Boston-based growth equity firm TA Associates.
Financial details of the transaction were not disclosed.
Inflexion acquired CMO, an enterprise health, safety, environment (HSE) and governance, risk, compliance (GRC) software solutions business, in a management buyout in October 2013.
Today CMO’s customers include Maersk Group, KPMG, Heathrow Airport and BHP. Demand for CMO’s products is driven by an increased need for configurable compliance software, increasing regulation, as well as an increasing cost of non-compliance, Inflexion said in a statement.
Mitratech provides software solutions to corporate legal departments. The acquisition of CMO gives the business a wider global footprint across the GRC sector, as well as adding new customers through which it can cross-sell its legal software services, the statement said.
“We are pleased to announce the sale of CMO to Mitratech; it’s a complimentary fit for the US-headquartered software provider and Inflexion’s second sale to a US buyer in the last 12 months following the realisation of Reward Gateway in 2015,” Inflexion managing partner John Hartz said in the statement.
The firm sold software company Reward Gateway to Boston-headquartered Great Hill Partners in a deal valuing the business at £140 million and generating a return of 7.7x and an internal rate of return of 59 percent for Inflexion investors.
The sale of CMO follows the close of two Inflexion vehicles at the end of last month. The Inflexion Enterprise Fund IV and Inflexion Supplemental Fund IV both closed on their hard-caps within eight weeks of launch, having each raised £250 million.
Inflexion raised the capital entirely from existing investors. The Supplemental Fund will invest alongside the £650 million Inflexion Buyout Fund IV and the £400 million Inflexion Partnership Capital Fund I, for which the firm held a double final closing in autumn 2014, while the Enterprise Fund will focus on the lower mid-market, writing equity cheques of up to £20 million.
“We're keen that we sit squarely across a broad tranche of the mid-market, able to offer a solution that’s really tailored to different opportunities, be they [in] the slightly smaller fund and fast-growing, be they structured minority positions, or be they some of the more mid-sized buyouts where perhaps investment is required to obviously get involved in the business but also to perhaps internationalise a business of scale. We want to be able to provide a solution across all three of those themes,” Inflexion managing partner Simon Turner told Private Equity International.