Lyceum in £225m software sale

Boston-based TA Associates has acquired a majority stake in Access Technology Group

Lyceum Capital, a UK-based lower mid-market firm, has sold its majority stake in Access Technology Group to TA Associates, according to a statement.

Financial details of the transaction were undisclosed but according to a source familiar with the deal the enterprise value was between £225 million and £250 million (€326 million, $379 million).

Colchester-based Access Group was founded in 1991 and employs 750 people. Access’s software covers finance, HR and payroll, business intelligence, supply chain, CRM and warehousing, and can be deployed in the cloud, in a hosted environment or on-site. The company’s applications are used by more than 6,000 customers. In December, the company acquired cloud hosting specialist StratoGen.

Lyceum bought the majority stake for £50 million in March 2011. Under Lyceum’s ownership, total revenues have more than doubled to more than £60 million while EBITDA has grown threefold. Jeremy Hand, founding partner of Lyceum said in a statement that the exit represented “another strong return for investors”, but declined to comment beyond the statement.

Lyceum initially made the investment using capital from its Lyceum Capital Fund II, a £255 million 2008-vintage. The firm is currently investing its third fund, a £330 million vehicle that closed in 2013.

The firm, which was established in 1999, typically invests between £10 million and £50 million of equity in fast-growing, UK-headquartered, mid-sized businesses.

Boston-based TA Associates is one of the largest and most experienced global growth private equity firms. The firm has invested in more than 440 companies around the world and has raised $18 billion in capital. It usually acquires both minority and majority stakes in profitable growth companies in the technology, financial services, business services, health care and consumer industries.