Manchester-based private equity firm NorthEdge said it completed the sale of CMap, the Manchester-headquartered Professional Services Automation (PSA) software business, to London private equity firm ECI.
CMap serves customers in the Architects, Engineering & Construction (AEC) and Consulting sectors.
NorthEdge said it invested in CMap in December 2019, backing the founding team led by CEO Dave Graham to execute on a growth strategy in both the UK and US.
“The exit was led by Ray Stenton, Managing Partner, and Dan Matkin, Director, alongside the CMap management team,” said NorthEdge.
“The deal builds further momentum in our technology track record, with the six realisations achieved from that sector to date delivering 4.6x gross MOIC and 69% gross IRR.
“Since our initial investment in 2019, we have supported the CMap team to consolidate their market-leading position in the AEC sector, as well as accelerating their market presence in the Consulting sector and the US.
“To support this further, CMap completed the acquisition of Atvero in 2023, an AEC-focused document management software.
“Throughout the partnership the business made significant investments in People, Sales, Marketing and Customer Success, resulting in strong ARR growth and NRR performance.”
Dave Graham, Founder and CEO of CMap, said: “When we were seeking Private Equity investment five years ago, I chose to work with NorthEdge because of their approach to partnerships, their proximity and their understanding of the entrepreneurial journey – I’m pleased to say that during our partnership, our expectations were exceeded.
“NorthEdge enabled us to build a high-quality team; facilitated significant investment into our technology and commercial approach; and supported us to complete our first acquisition. Following their support, we are now ready for the next phase of our journey, which we are looking forward to delivering alongside our new partners.”
Graham added: “ECI understood our key values and ambitions for the business, and we’re incredibly excited to be partnering with them for this next stage of growth.
“CMap have a fantastic opportunity to accelerate our growth, and this partnership will allow us to further invest in our product and create more opportunities for people within CMap to grow with the business as we scale in the UK and the US.”
Ray Stenton, Managing Partner at NorthEdge, said: “We have thoroughly enjoyed working with the CMap team since our investment in 2019.
“Since then, we have seen the business significantly grow its team, revenues and customer base across its chosen sectors and regions – it’s another great example of NorthEdge supporting an international technology firm from the UK regions.
“We look forward to watching the company continue to grow with the support of ECI and we wish Dave and the team every success in the future.
“The exit of CMap is also an important milestone for SME Fund I, it represents a strong first exit for the Fund, as well as building on our strong technology track record.”
NorthEdge and CMap were advised by Houlihan Lokey (Corporate Finance), DWF (Legal), PwC (Commercial, Financial and Tax), Crosslake (Technology) and Liberty (Management advisors).