ClarityBlue



Investment Date:July 2003Exit Date:January 2006
Investment Type:Buyout from Sand Technology IncExit Type:Trade
Sector:Customer intelligence solutionsEnterprise Value:£100m


 

Business Description
  • ClarityBlue is a customer intelligence consultancy and systems integration business. It designs, builds and manages marketing databases for large companies. Its solutions enable its clients to significantly improve the speed and effectiveness of their customer targeting and retention programmes
Investment Rationale
  • ClarityBlue operated in a fast growing market, with a strong client base and significant recurring revenue streams
  • Provided faster solutions at a lower cost than its non-specialist competitors
  • Opportunity to grow the business organically both through greater penetration of existing client base and winning new clients in the UK and internationally

Strategy/Value Creation
  • Management team was strengthened by the introduction of Andy Vaughan as chairman
  • Significant multi-year contract wins throughout the period of the investment including LloydsTSB and Sky
  • Developed own intellectual property around CRM solution
  • Invested in data centre to facilitate hosted platform
  • Planned and executed a tightly controlled expansion into the US
Performance
  • ClarityBlue had sales growth of 40% p.a. and tripled its profits in the 3 year investment period
  • Sold to Experian for £100m representing a return of 7.8x cost and a 129% IRR

 


Back
quote They were well organised and were very good about strategic thinking. They were driving processes 12 months before the exit. The exit process was very clean and well organised"

Duncan Painter, CEO of ClarityBlue

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