NVM Private Equity Vintage III LP invests in Secure Retail
NVM Private Equity (NVM) today announces that its fund, NVM Private Equity Vintage III LP, has completed the management buy-out of Leicestershire-based Secure Retail Limited (Secure), a leading provider of electronic payment solutions.
Founded by CEO Carl Barton in 2003, Secure offers a range of hardware, managed services and software products principally to retail, hospitality and infrastructure clients, providing full integration with all payment services providers operating in the market. Secure’s wide range of products combined with its extensive knowledge of the electronic payments sector, ensure that the business is able to offer comprehensive market coverage and highly tailored solutions to its customers.
With an ever expanding and consumer led market, the payments industry is currently undergoing a substantial period of modernisation. Consumers now favour faster, easier and more accessible forms of payments such as card and contactless solutions, in contrast to traditional methods such as cash and cheques. In 2016, card transactions exceeded 50% of all payments and in 2017 had reached 16.3 billion, a figure which is expected to increase at 4% p.a. going forward, such that by 2027 these will exceed 23 billion. In addition, investment in hardware is being driven by both the regulatory environment and enhanced security protocols such that the current UK installed base of 2.4 million payment devices is expected to maintain its historic CAGR of 9% for the foreseeable future. Additionally, payment devices tend to be subject to a 3-5 year replacement cycle. Secure, with its growing portfolio of products and embedded expertise, is well-positioned to serve the payment needs of consumer-facing businesses.
James Arrowsmith, Andy Leach and Liam May led the investment for NVM, with Leach and May joining the Secure Board at completion.
Secure Retail’s Managing Director David Russell said: “Secure Retail is delighted to be partnering with NVM. From our very first meeting it was clear that NVM had the appetite and understanding to add considerable weight to the exciting product strategy being delivered by the Secure Retail team. The next phase of payment security will undoubtedly create the potential for significant growth in software, hardware and support services. Secure Retail supported by NVM is well placed to capitalise on this opportunity”.
James Arrowsmith, Investment Partner of NVM Private Equity said: “This represents NVM’s second investment in a Midlands-based business in recent weeks, demonstrating our continued commitment to the region and we look forward to supporting more growing Midlands businesses in the future”
Andy Leach, Investment Partner of NVM Private Equity said: “We are delighted to be partnering with Carl, David and rest of Secure’s highly experienced management team to take the business forward through the next period of its growth. The payments market is necessarily becoming more complex and specialised given heightened regulatory and security considerations, coupled with increasing demands from consumers for speed and flexibility. The expertise that Secure has built over the past 15+ years will be of considerable value in such a dynamic market.”
NOTES TO EDITORS
For further information please contact:
- Natalie Dickinson (NVM: PR & Marketing) – 0118 951 7021 email@example.com
- Andy Leach (NVM: Investment Partner) – 0191 244 6022 firstname.lastname@example.org
- James Arrowsmith (NVM: Investment Partner) – 0118 951 7016 email@example.com
NVM was provided with:
- Legal due diligence by DWF (Alasdair Outhwaite & Rosie Spencer)
- Financial due diligence by Dow Schofield Watts (Ed Brentnall)
- Commercial due diligence by CIL (Tom Fletcher & Mike Hallett)
- Tax due diligence by Deloitte (Arran Simpson & Lee Dehkordi)
- Management due diligence by Continuum (Steve Wycherley)
Secure Retail was provided with corporate finance advice from Stuart Lees and David Gardner at KBS Corporate and legal advice from Peter Mayhew and Laurence Matthews at Shakespeare Martineau.
NVM Private Equity is independently owned with over 30 years’ experience of investing in unquoted UK businesses. NVM is a generalist investor, managing approximately £430 million of funds, and is differentiated by having executives living and working in regional business communities throughout the UK. NVM seeks investment opportunities of between £1 million and £15 million in UK businesses, which have the right mix of growth potential and market vision. They may be looking to grow organically, acquire another business or secure a management buy-out. www.nvm.co.uk