In 2018 we completed 16 add-ons in addition to the platform acquisition of DMC Canotec, worth a combined £110 million in enterprise value.
Of the 16 add-on deals closed by Horizon this year, 15 were generated via proprietary deal-flow rather than via an auction process and include companies based in Asia, mainland Europe and the US. Examples include Sabio Group, a leading provider of customer contact technology, acquiring flexAnswer Solutions and Callware, the fourth and fifth acquisitions Sabio has made since Horizon backed the management buy-out of the business in 2016, and Bellrock closing three acquisitions in 2018 including the acquisition of Oakleaf & Nifes, which expanded Bellrock’s compliance service offering.
Jeremy Hand and Simon Hitchcock, Managing Partners at Horizon, said: “It has been a record year of investment across our portfolio. The team has worked closely with the managers of our investee companies, and generated significant value as evidenced by recurring revenues growing at more than 20% in the year and EBITDA growth of over 40%. Heading into 2019, we see add-on acquisition activity continuing across the portfolio and are excited about a strong pipeline of potential new platform opportunities.”
Deal activity comes amidst a successful £200 million fundraise announced in October this year, with commitments from a group of blue-chip institutional investors led by Pantheon and Idinvest Partners alongside other investors including Lombard Odier, HQ Capital and eQ Asset Management.