LDC back MBO of ENSEK

LDC back MBO of ENSEK

LDC has backed the management buyout of ENSEK, a leading software supplier to UK energy providers. The transaction enables an exit for MTLS Ventures.

After a significant number of recent customer wins, the multi-million-pound investment will enable the business to embark on the next stage of its growth journey.

Headquartered in Nottingham, ENSEK uses its market-leading, software-as-a-service (SaaS) platform to provide existing energy suppliers with its revenue assurance and gross margin accounting product. It also provides new market entrants with the end-to-end software solution required to enter and operate in the UK energy sector.

Led by CEO Jon Slade, the business has grown rapidly since its launch in 2010 through a continued investment in technology and a commitment to solving the issues faced by existing and new entrants to the UK energy market. This has led to a diverse customer base, revenues that are currently growing at 100%+ year-on-year and an employee base of 65 people.

Jon Slade, CEO at ENSEK, said: “The energy sector is facing a period of unprecedented change, driven largely by the number of smaller suppliers entering the market. We want to build on our work of providing market-leading software services to energy suppliers, large and small, across the UK and continue to help them use data to become more efficient and competitive within the growing market. Partnering with LDC will give us both the financial firepower and strategic expertise required to take the business to the next level, and we’re looking forward to working closely with the team as we grow the business together.”

The deal was led by investment directors John Green and David Bains at LDC in Nottingham, and both will join the board as non-executive directors.

John Green, investment director at LDC in Nottingham, added: “Jon and the team have an ambitious growth plan, which has driven the business forward at a fast pace. Their in-depth knowledge of the sector, strong technical capabilities and commitment to deliver exceptional customer service is continuing to bear fruit, with more than 15 new customers secured in the last year alone, and the business has firmly established itself as a key player in the market.”

MTLS Ventures were advised throughout the investment process by Matt Eves, Partner in Isca Ventures. The transaction enables the MTLS initial fund to realise a return in excess of 2.5x money on all of their investments with one further investment still to be realised. Commenting on the transaction Matt Eves said, “Jon and the team at Ensek have successfully grown the business and are entering an exciting phase of growth with LDC.”

Jon and the team at Ensek have successfully grown the business and are entering an exciting phase of growth with LDC.

Matt Eves - Partner, Isca Ventures