Livingbridge sells UK’s Ten10 to Graphite Capital

Mid-market private equity firm Livingbridge has agreed to sell Ten10, a UK a quality engineering and software testing services provider, to Graphite Capital. The firms declined to provide financial details of the deal.

Ten10 helps about 100 customers in the financial, legal, retail and public sectors manage the commercial and financial risks involved with software to enable them to comply with regulatory change, support growth, reduce costs and increase customer satisfaction. It has more than 250 employees and offices in London, Leeds and Raleigh, North Carolina.

Livingbridge first invested in the business in 2015, when it merged two existing companies, Centre4Testing and The Test People, rebranding it as Ten10.

In the past two years, Ten10 revenues increased by 28% to more than £26m. The management team has reinvested a substantial percentage of its proceeds as part of the deal, Graphite said in a statement.

The firm expects to expand operations in the UK market, as the £1bn quality engineering and software testing market in the country is forecast to grow by 7% a year to 2023. The company also has room to grow in North America, as this market is likely to grow at the UK rate over the same period, according to Graphite.

This deal is the fourth transaction of Graphite Capital Partners IX fund, a £500m vehicle closed in 2018.

Based in the UK, Graphite focuses on management buyouts and also development capital opportunities. It backs companies with enterprise values of £30m to £175m.

Source: Private Equity News