SOFTWARE HOUSE CHANGES HANDS
26 May 2005
Six senior staff at a Rotherham based software company IMS have bought the business for which, collectively, they have worked for 58 years. Steven Kay, who joined IMS nine years ago is taking over as Managing Director. Venture capital and bank finance support for a deal worth, in total, £1.6 million has been won from YFM Venture Finance and HBOS.
IMS offers a system software design and production service targeted, in the main, at the small and medium sized enterprise (SME) market. Its modular, Uniplan, software is an established product that allows seamless integration between manufacturing process, stock control, accounting, sales, invoicing, purchasing, scheduling and e-business functions. The Company's latest software product, Plan-it, is an intelligent system for scheduling work according to resource availability.
As Steven Kay puts it "We have a good business here with a strong customer base and opportunities to expand in a number of areas. The business has not developed as rapidly as it might have done over the last three years but with a new marketing and sales strategy that targets particular niches in the manufacturing, transportation and services sectors we are confident that the business has excellent prospects."
The MBO team called on the services of Kevan Shaw and Peter Steel of Strategic Corporate Services to negotiate terms with the retiring owner-managers and to secure support funding for the deal. "The experience of the MBO team working in the business developing new products and building relationships with customers was a major plus point in seeking venture capital and bank finance support" says Peter Steel.
At YFM Venture Finance Mark Hunter was responsible for handling the investment proposal "We felt that the MBO team has the enthusiasm and drive to build sales and profitability. To secure that wider corporate experience of strategy formulation and development we've introduced Tony Kelly to the MBO team. Tony has run both start up and established businesses in the engineering, electronics, business services and software development sectors. He has agreed to join the IMS Board as non-executive Chairman."
Paul Rule from Bank of Scotland said "This was an opportunity to support a young and established management team in the growth and development strategy of IMS. The company services a niche and growing sector".
The MBO team were advised by Malcolm Jones and Stacey Churchward of Solicitors Fox Hayes. YFM Venture Finance were advised by Derek Rodgers of Solicitors Keeble Hawson
Contacts
Steven Kay, Managing Director, IMS Tel: 01709 839933
Peter Steel, Strategic Corporate Services, Tel: 0114 268 4141
Mark Hunter, YFM Venture Finance, Tel 0113 294 5017