Datapath

Datapath

Type: Equity Release, MBO

Total Originally Invested: £3 million

Initial Investment: September 2007

Sector: TMT

Website: View Here

Overview

Datapath manufactures graphics cards and video capture hardware. Established in 1982, it provides multi-screen control solutions for applications including control rooms, financial dealing rooms, CCTV, distance learning, digital signage and video conferencing.

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Company Background

Founded in 1982 by Steve De'Ath and Tony Jones, Datapath is a world leading innovator in the field of computer graphics, video capture and video wall display technology.

Foresight Investment

In September 2007, Foresight invested £3 million in the company through three of its VCTs as part of a £12 million MBO of Datapath, allowing the founder shareholders to realise value for some of their shareholding.

Foresight introduced Simon Hunt, an accomplished private equity investor in his own right, as an investing chairman. Foresight also identified other individuals within its network who were able to provide the company with specific insight into the markets and distribution channels central to its success and further guide the company's business planning.

Future Strategy

Datapath's revenues and operating profits have more than tripled in the period since the investment was completed. Bank facilities put in place at the time of the transaction were repaid in full, as were Foresight's initial loans of £2.7m.

Bjorn Krylander was appointed as the company's new Chief Executive in October 2010, with a background as CEO of Cambridge Broadband Networks and earlier at Ubinetics Limited and Ericsson Inc.

Foresight has at all times been ready to facilitate the development of the company's technology and business, as well as ensuring value creation for the management team. I would have no hesitation in recommending Foresight as a partner to any rapidly expanding company

Simon Hunt, Chairman