Case Study: Diagnos Holdings
Deal History
Founded in 1999, Diagnos Holdings (“Diagnos”) develops and sells sophisticated automotive diagnostic software and hardware that enables independent mechanics, dealerships and garages to service and repair vehicles.
As cars have become increasingly sophisticated and more reliant on electronic systems, mechanics need to be able to communicate to the in-car computer running the process or system, which in turn requires a diagnostic tool.
Diagnos’ products are sold throughout the UK, which accounts for the core of its business, Europe, and the US. Diagnos’ supplies its ‘Autologic’ product to well known car brands including Land Rover, BMW, Mercedes, Jaguar and VAG (VW, Audi, Skoda) and Porsche.
Investment Opportunity
The four Foresight VCTs have committed £3.75m of equity, alongside £3 million of flexible debt financing to buy out three of the four founders of the business. Diagnos’ management also invested in the deal.
The deal was led by Ian Jones, an existing shareholder in the company, alongside Peter Toland and Kevin Finn, two executives with specific motor industry knowledge. The management team has vast experience in the automotive diagnostics sector, including increasing international sales via distributors. Chris Price led the deal for Foresight and will be non-executive director on Diagnos’ board.
Company Strategy
With Foresight’s backing, Diagnos is able to continue to expand the range of cars its tools can cover, launch new product lines, and increase sales through national chains and international distributors.
