Case Study: Autologic Diagnostics

Portfolio

Type:                      Buy In Management Buy Out
Total Invested:    £3.75 million
Date Completed: February 2009
Sector:                  Business Services
Website:               www.autologic.com

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Company Background
Founded in 1999, Autologic develops and sells sophisticated automotive diagnostic software and hardware that enables independent mechanics, dealerships and garages to service and repair leading vehicle brands.

As cars have become increasingly sophisticated and more reliant on electronic systems, mechanics need to be able to communicate with on-board electronics to diagnose and fix faults, hence the need for such a sophisticated diagnostic tool. Autologic has developed into one of the fastest growing vehicle diagnostic services companies in the world, with a growth of 125% over the past two years. It is based in Oxfordshire, with offices in New York and Hong Kong. The management team is led by Kevin Finn and Peter Toland, along with Technical Director Ian Jones.

Foresight Investment
The four Foresight VCTs initially invested £3.75 million in a combination of debt and equity as part of an £8.2 million BIMBO.

Post-deal Developments
In January 2012, Foresight Group sold just over 50% of its stake in Autologic to a new company funded by ISIS Equity Partners in a secondary management buyout at an enterprise value of £46 million. The secondary buyout, together with a recapitalisation of the company completed in July 2011, returned £12.7 million in aggregate to the four Foresight VCTs, representing a return of 3.4 times the original investment. Foresight has retained a minority shareholding and loan position in the new company.

“We were introduced to Foresight after an aborted experience with another private equity house. They were clear from the outset what they required to complete the deal and took a commercial view on issues. Foresight did what they said they would, when they said they would, and we are delighted to retain them as a stakeholder in the current business.”

Kevin Finn, Chairman