Case Study: Datapath

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Type: MBO & cash-out to management
Total Invested: £3 million
Date Completed: September 2007
Sector: Technology hardware & software
Website: www.datapath.co.uk

Company Background
Founded in 1982 Datapath is a leading supplier of graphics cards, video capture cards and other products used to control display systems such as video walls, high end digital signage and multi-screen systems (e.g. control rooms). More than 50% of all videowalls installed worldwide use Datapath equipment. The company is based in Derby with over 40 staff.

Foresight Investment
In September 2007, Foresight invested £3 million as part of a £12 million MBO of Datapath, allowing the founder shareholders to realise value for part of their shareholding.

Deal Attractions
Datapath is a leader in the video wall controller market and has consistently achieved strong profitability. It sells globally across the Americas, Europe, the Middle East and Asia. Growth opportunities include the video conferencing and distance learning markets. Whilst the management team has a proven track record, Foresight introduced Simon Hunt as non-executive Chairman to broaden the board's experience.

Company Achievements
Datapath has maintained its strong profitability following the MBO. Bank facilities put in place at the time of the transaction have been repaid in full, as have Foresight's loans of £2.7m.

“I was invited to join the board of Datapath when Foresight invested in the company in 2007. A Foresight representative was also appointed to the board, which quickly transitioned to a team that fully represents the interests of shareholders. Foresight has at all times been ready to facilitate the development of the company’s technology and business. All points arising have been dealt with speedily and without bureaucratic interference. I would have no hesitation in recommending Foresight as a partner to any rapidly expanding company.”
Simon Hunt, Chairman, Datapath