Silverpeak advises Virtual Clarity on strategic acquisition by DXC Technology Company

Silverpeak, the technology investment bank, acted as the exclusive financial advisor to Virtual Clarity, the leading cloud transformation consultancy, on its sale to DXC Technology Company (NYSE: DXC). This follows DXC’s strategic investment in Virtual Clarity in 2017 on which Silverpeak was also lead adviser.

Virtual Clarity is Silverpeak’s 7th transaction in the last 6 months.

Founded in 2008, Virtual Clarity is based largely in the U.K. and U.S. The company is comprised of a blend of enterprise IT insiders and hands-on experts with deep knowledge of modern tools, techniques and key industries – including Financial Services, Health Care, Manufacturing, and Telecommunications.

The acquisition of Virtual Clarity aims to further position DXC as a leading provider of IT Modernization services for applications and infrastructure. This builds on DXC’s acquisition earlier this year of Luxoft as clients increasingly are seeking industry-specific application development and innovation as part of their IT modernization approach.

Silverpeak worked with the Virtual Clarity board as adviser on their journey to a strategic realisation. We approached global strategic buyers and PE growth investors. Having secured multiple Tier 1 offers, we managed the process to a tight completion timetable.

Paddy MccGwire, Managing Partner at Silverpeak leading the deal added “We are delighted to have advised Steve on this fourth transaction. Steve and his team at Virtual Clarity have built a great business and will be able to accelerate its impact to leave a footprint in the sand, reporting directly to the DXC CEO.”

Steve Peskin, CEO and founder of Virtual Clarity said, “This is my fourth transaction with Paddy and his team, starting 20 years ago. He has always outperformed but this time Paddy, Matteo and their team absolutely nailed it. From first offer to completion in 50 days, and from LOI in only 19 business days, was always going to be a monumental task but they pulled it off masterfully with calming humour, great expertise and advice and nerves of steel. Bravo! ”

US EBITDA multiples reach record highs but revenue multiples down across the board

Welcome to the latest edition of the Silverpeak Benchmark report – Application Software Sector, a review of key company valuation metrics in the US, UK and European application software sectors. By reviewing sector median averages, our aim is to provide a set of software industry benchmarks against which individual company performance can be measured.

Report highlights

  • US SaaS revenue multiples have been peaking since March 2019 but are showing signs of a potential downturn occurring in Q4 2019, supported by their 7% drop in multiples since Q2. However, their median EBITDA margin has been outperforming the other categories, rising 1.4% versus their average 2% decline.
  • US Horizontal revenue multiples took a nose dive, falling 11% from last quarter; effectively ending the period, from Q3 2018, in which it was consistently above US Vertical.
  • UK Small & Mid revenue multiples have been stagnant since 2015 and their EBITDA multiples have been slowly falling; not recovering from their 7x plunge in Q4 2018.
  • European companies did not experience a decline themselves, instead growing 0.6%, despite the bear-ish market, where there was an average fall of 7% in revenue multiples across the other 4 categories.

Silverpeak Benchmark Report Q3_2019

Deep Tech Summit – October 2019

We are delighted to be sponsoring TechTour’s Deep Tech Summit 2019 in London on 15-16 October.

Europe’s most promising growth companies and “wow-factor start-ups” have been chosen by the DTS Selection Committee will be presenting following an opening keynote by Ron Black, CEO, Imagination Technologies.

This year’s Summit covers range of breakthrough technologies including autonomous systems, robotics, AI, IoT, cyber-security, big-data, blockchain, 3D printing, space, hardware and electronics, and other IP-driven solutions enabling digital transformation across multiple industries.

Pietro Strada and Paddy MccGwire, Managing Partners at Silverpeak, will be presenting at the Summit.

For more information please contact Jane Martin – jm@silverpeakib.com

 

SpaceTech Leadership Dinner – 18 September 2019

Ahead of the UK Space Conference 2019 next week, we co-hosted an enlightening SpaceTech Leadership Dinner with Seraphim Capital and Gillamor Stephens last night with over 25 attendees across start-ups, corporates and agencies from the space ecosystem.  Carissa Christensen, founder of Bryce Space and Technology opened the discussion.

SEMINAR – Optimising exits for European technology companies – 21 November 2019

Silverpeak, in association with international law firm Bird & Bird, is hosting this seminar on Thursday 21 November 2019.

This briefing will provide practical guidelines and best practice for those seeking to sell or make a partial realisation in the current environment. You will hear real-life stories from an entrepreneur’s recent exit experience together with a viewpoint from the Private Equity industry.

Who should attend
This seminar is relevant to CEOs, Chairmen, FDs/CFOs, Non-executive Directors, shareholders and VC/PE investors with a stake in technology companies.

Programme
08.00 Registration
08.30 Introduction
08.35 M&A trends & valuation metrics
08.45 Trends & Risk in M&A Transactions
08.55 My Exit Experience
09.15 Achieving a strategic value
09.30 Panel discussion – Lessons for an optimum exit
09.45 Q&A to Panel
10.00 Networking
11.00 Close

 

Venue
Bird & Bird, 12 New Fetter Lane, London EC4A 1JP
Nearest stations: Chancery Lane, Blackfriars and Farringdon

 

REGISTER HERE

Silverpeak advises ICS Cybersecurity specialist Sentryo on acquisition by Cisco

Silverpeak, the technology investment bank, acted as the exclusive financial advisor to Sentryo, a France-based company that provides asset visibility and cybersecurity solutions for industrial control systems (ICS), on its acquisition by Cisco.

Sentryo is the pioneer in solutions dedicated to managing the cyber risk of M2M networks and industrial control systems. Sentryo’s ICS CyberVision empowers control engineers as the front line of defence to ensure integrity, continuity and security of their industrial processes. It leverages unique AI algorithms to give them comprehensive visibility on their industrial assets, so they can easily identify vulnerabilities, detect anomalies in real-time and work with IT to fight cyber-attacks. Sentryo’s ICS CyberVision is used every day by large corporations in the energy, manufacturing and transportation markets.

Silverpeak originally worked with Sentryo on a fundraising round during which time we assisted management in developing a comprehensive long term strategic growth plan to become the de facto leader in Europe and enter the US market. Shortly thereafter Sentryo were approached by a strategic buyer and again as lead adviser, Silverpeak were appointed to map the marketplace, identify and contact potential buyers and negotiate a transaction through to final completion.

Thierry Rouquet, CEO of Sentryo said, “Silverpeak have been the long-term corporate finance advisers to Sentryo, and helped engineer the previous round of financing based on an ambitious international drive. When Sentryo was approached unexpectedly they were once again ready to help and conducted a rapid scan of interested parties before helping us negotiate the win-win deal with Cisco. During this whole process, Silverpeak always acted speedily and professionally. We especially appreciated their international reach as well as the local support. To be honest, at many junctures, they helped us to convince our shareholders of the considerable potential of Sentryo, resulting in a price which, in many ways, went beyond our expectations.”

As a serial entrepreneur, Thierry knew the ropes and had a clear objective of building a world leader in the cybersecurity sector applied to industry. From starting the business to reaching a leadership position in Europe and to joining forces with the world leader in networking (and the inventor of the Internet of Everything moniker) took just 5 years, which is a credit to the team and its backers. Along the way, Silverpeak helped keep the ambition alive through funding first and then the Cisco transaction, which proved to be a fantastic exit for the financial shareholders, as well as great recognition for the team and the resources of a large firm to continue with their vision.

Throughout the journey, Silverpeak delivered steadfast support maintaining the level of ambition required in the face of startup competitors who were raising up to 10x more funds than Sentryo who, in the end, proved to be the most capital efficient of all. The Cisco transaction demonstrates we were right in supporting Sentryo and its backers, and shows, once again, the value of Silverpeak’s technology specialisation as well as its efficient delivery across Europe.

This is the fifth transaction that Silverpeak has completed in the last three months.

For more information please contact Pietro Strada: ps@silverpeakib.com

US SaaS multiples blast previous high out of the water

Welcome to the latest edition of the Silverpeak Benchmark report – Application Software, a review of key company valuation metrics in the US, UK and European application software sectors. By reviewing sector median averages, our aim is to provide a set of software industry benchmarks against which individual company performance can be measured.

Report highlights

  • US SaaS median revenue multiples have continued to rise, surpassing their previous quarter end, 8.2x, by 7%; whilst also reaching an all time high of 9.4x during the quarter
  • UK Small & Mid median revenue multiples were recovering, closing 6.7% higher than the previous quarter; however, they are still 10% lower than the same quarter last year (3.9x)
  • European companies continue to have the lowest valuations, with no sign of this trend changing any time soon

Silverpeak Benchmark Report Q2_2019_Final

Autonomy software client Oxbotica raises an additional investment round

Silverpeak’s universal autonomy software client Oxbotica has raised an additional significant undisclosed investment round from existing investors IP Group plc, Parkwalk Advisors and AXA XL.

We also advised Oxbotica on their successful £14m funding in their first institutional investment round in 2018. The additional investment coincides with the appointment of Ozgur Tohumcu as CEO joining from Tantalum and previously Ericsson, who will lead the business on its next chapter of development.

Oxbotica, whose mantra is “any vehicle, any environment, any time” customers include: driverless shuttle trials at Gatwick airport; driverless cargo pods at Heathrow airport; partnering with Addison Lee to bring self-driving taxis to London; and other sectors in every hemisphere.

Paddy MccGwire, Managing Partner at Silverpeak said, “ This is our sixth transaction announced in eight weeks. It is great to see this iconic British HQ deep technology global business demonstrating the confidence of its investors so quickly. And I’d like to congratulate Co-Founder CTO Paul Newman, who also is the Director of the Oxford Robotics Institute, on being awarded the prestigious Royal Academy of Engineering Silver Medal.

Winners announced at Silverpeak sponsored Enterprise Awards

Silverpeak were delighted to attend the 9th WCIT Enterprise Awards dinner last night to celebrate some of the most successful technology entrepreneurs in the UK & Ireland

Congratulations to all the winners.

Young Entrepreneur – Jack Tang – URBAN

Female Entrepreneur – Pamela Cook – INFOSHARE

Social Enterprise Entrepreneur – Alex Stephany – BEAM

Start Up Award – Niall Barton – WRISK

Public Sector Award – Jonathon Desmond, Max Smith and Michael Van De Weg – IMMJ

Deep Tech Award – Ricky Thomas – AVORA

Emerging Business Award – Priya Lakhani – CENTURY TECH

Developing Business Award – Peter Baumann – ACTIVE NAVIGATION and Emma Bowkett – CONVERTR

Scale Up Entrepreneur Award – Vishal Marria – QUANTEXA

Enterprise Award – Mark Richer – STARLEAF

Entrepreneurial Team of the Year – Neal Gandhi and Oliver Rigby – THE PANOPLY

Judges Award – Simon Hay – FIREFLY LEARNING and Bernhard Niesner – BUSUU

Mentor of Year – Stephen Kelly

Listed Company of the Year Award – Alastair Bathgate – BLUE PRISM

Silverpeak advises Thoughtonomy on agreed acquisition by Blue Prism (AIM:PRSM)

Leading the market in delivering intelligent automation capabilities from the cloud, Blue Prism, today announced its agreement to acquire Thoughtonomy for up to £80m. The acquisition will see Blue Prism’s connected-RPA platform distributed and supported as a turnkey SaaS offering, helping accelerate the deployment of digital workers across market verticals and into mid-tier enterprises worldwide. Silverpeak acted as exclusive Lead Adviser to Thoughtonomy.

Thoughtonomy’s secure, award-winning enterprise grade SaaS solution, leveraging Microsoft Azure, enables an on-demand Virtual Workforce and full Intelligent Automation platform. This acquisition joins the power of Blue Prism’s connected-RPA platform with Thoughtonomy’s software, allowing customers to quickly and more easily drive improved productivity and customer experiences, without needing to set up a dedicated infrastructure to support their program.

It gives enterprises a way to access and leverage embedded and fully integrated AI technologies such as computer vision, Natural Language Processing (NLP) and machine learning to address a complete range of use cases from back office to front office. Additional features, including ready-to-use channel interfaces such as chatbots and web-forms coupled with Thoughtonomy’s integrated AI-enabled digital workforce manager, IADA®, helps companies scale their automation strategy at speed.

“The acquisition of Thoughtonomy will support a broader strategy to strengthen our portfolio with cloud offerings that deliver value and enhance customer experience,” says Alastair Bathgate, Co-founder and CEO, Blue Prism. “Thoughtonomy brings valuable knowledge and experience in the development and implementation of cloud-based intelligent digital workers, with a successful track record of delivering its solutions to mid-tier enterprises in a number of industry verticals complementary to the areas of the market Blue Prism has served.”

Thoughtonomy’s intellectual property and embedded Marketplace will also extend Blue Prism’s Digital Exchange DX capabilities – an intelligent automation marketplace comprising customers, technology and channel partners – while enhancing the company’s overall push to deliver RPA services with leading cloud services providers such as AWS, Microsoft Azure, Google and IBM.

“We’ve been working with Blue Prism since our foundation in 2013, and we’ve built out our unique SaaS and intelligent automation capabilities to leverage their best in class RPA software,” says Terry Walby, CEO & Founder of Thoughtonomy. “Together as leaders, we plan to broaden and simplify access to the most advanced digital workforce capabilities on the planet.”

This combination of capabilities will provide enterprises with even greater flexibility for their automation projects offering them the ability to choose between SaaS or dedicated infrastructure. Together both companies will continue to build out the strongest partner network in the industry aimed at driving up customer adoption in key market verticals including financial services, telecoms, insurance, retail, healthcare and pharmaceuticals, professional services, energy, utilities, public sector and outsourcing providers. This also includes commitments to support partner enablement, sales, pre-sales and implementation on a global scale.

Thoughtonomy has delivered year on year growth of over more than 250 per cent over the past three years and has customers spread across four continents. In 2018, the company was ranked fourth in the Sunday Times Tech Track 100 and 11th in the Deloitte 2018 UK Technology Fast 50, cementing its position as one of the fastest growing UK-headquartered technology companies and one of the brightest stars in global AI.

Silverpeak worked with Thoughtonomy as lead adviser examining both private equity investment and strategic acquirers globally culminating in the agreed acquisition of Thoughtonomy by Blue Prism.

Paddy MccGwire, the Managing Partner at Silverpeak leading the process added, “Terry and the team at Thoughtonomy have developed a great business in the six years since founding, developing the market leading intelligent automation SaaS RPA platform. Blue Prism will provide a great strategic and cultural fit to continue to exploit the market opportunity.”

 

For more information please contact Paddy MccGwire: pm@silverpeakib.com

Other advisers to Thoughtonomy were: Taylor Wessing, lawyers; Smith & Williamson, tax.