THE private equity arm of Lloyds Banking Group has pumped a seven-figure sum into Antrim-based literacy software firmTexthelp to enable it to accelerate its growth and continue to develop its software proposition.
LDC’s cash injection will support continued international growth of the company and help it develop new products.
Texthelp, a market-leading international education and corporate software provider, continues to grow its international business and boasts an established customer base across the Americas, Europe, Middle East and Australasia.
The firm, founded in 1996, employs 165 staff across its headquarters in Antrim and satellite offices in Boston and Brisbane.
Texthelp has developed a number of software products including Read&Write, EquatiO, Browsealoud and WriQ which are used in both the education and corporate sectors to help students and employees with reading, writing and numeracy difficulties, including those with dyslexia or working in a second language.
The business generates revenues of £19 million, the majority from the north America market, where it has a significant and growing presence.
Texthelp also recently launched its services in the Middle East and South America with localised products translated into Arabic and Spanish.
Having successfully transitioned to a software as a service (SaaS) business model, the business now benefits from both high recurring revenues and strong market growth in the global ed-tech market.
LDC’s partnership will support the management team - led by CEO Mark McCusker, CTO Martin McKay and CFO Seamus Scullion - to realise clear growth opportunities in new and existing markets as well as driving new product development, particularly in data analytics.
David Gilbertson will join the new board as non-executive chairman alongside LDC’s Steve Aston and Joseph Fison.
Texthelp chief executive Mark McCusker said: “Our company was founded on our vision of a world where difference, disability or language are no longer barriers. With LDC's help we can further our commitment to helping unlock everyone's full potential.
"This partnership gives us the added resources and expertise to bring our services to more organisations across the globe. LDC has a long-standing reputation of supporting technology firms and we look forward to working alongside their team during the next phase of our journey.”
LDC backs ambitious management teams from UK-based companies seeking up to £100m of equity for management buy-outs, institutional buy-outs or development capital transactions.
It has a portfolio of 90 businesses across the UK which collectively generate £5bn of revenues and employ?more than?32,000 people. LDC has committed to invest £1.2bn in UK mid-market businesses over the next three years.
Director Steve Aston said: “Texthelp is widely recognised as the market leader in its space based on its advanced products and global presence. Assistive technology not only helps people feel more confident but can also aid productivity.
"We are looking forward to working with Mark and his first-class team to bring Texthelp’s services to more people worldwide and continue to improve products to provide a best-in-class customer experience.”
Michael Hamill, senior associate at Pinsent Masons, who supported Texthelp in the transaction, added:
"Private Equity investors have been showing increasing appetite for opportunities in Northern Ireland and LDC’s investment shows that strong performers will attract strong backing. We are delighted to be able to support that with our specialist private equity experience."
