Posted: 25 February 2022

WestBridge generates a 4.2x multiple of cost on the exit of bChannels

WestBridge generates a 4.2x multiple of cost on the exit of bChannels

WESTBRIDGE has exited bChannels following the company’s acquisition by The Channel Company, a US trade buyer with a complementary service offering, backed by US based Eagle Tree.

The transaction marks the second successful exit for WestBridge in the last 12 months and delivers a 4.2x multiple of cost to WestBridge’s investors.

WestBridge backed the buyout of the global technology marketing agency in July 2014 and has worked closely with the executive team over the period to deliver a scalable and repeatable business model.

Under the stewardship of Phil Gowing (CEO) and Mark Truby (COO), revenues have doubled and profitability has tripled during WestBridge’s ownership period, and the company is well positioned to achieve its business plan of £26.5 million of turnover and £4.8 million of profit by 2025.

Headquartered in Oxford, with offices in the United States, Australia, Spain and Malaysia, bChannels provides digital marketing services and customer engagement strategies to global technology companies, including AWS, Fujitsu, Microsoft and Xerox.

Since investing, WestBridge has deployed its value creation model to bolster the bChannels senior management team with pivotal appointments, including the non-executive chairman, Richard Bandell; overseen its geographic expansion; and transformed the company from a customised solutions provider to one offering a portfolio of modular, higher-margin services based around the innovative IP, Intelligent Index.    

WestBridge partner, Valerie Kendall, who has worked closely with bChannels since the original transaction, said:

“Phil and Mark have transformed the bChannels service offering to reflect the evolving technology market and to create a scalable business model. All of this has reinforced the company’s market leading position and provided the platform for further sustained growth.”

“We wish them continued success and are delighted to have played our part by delivering our unique approach to value creation.”

WestBridge managing partner, Guy Davies, added:

“This exit at a 4.2x multiple of cost continues to improve the average realised multiple of 3.0x on all WestBridge investments and is further validation of our strategy and systematic value creation model for lower mid-market high growth businesses. Congratulations to Phil, Mark, Richard and the team.”

bChannels CEO, Phil Gowing, said:

“WestBridge has genuinely been a partner in our growth story. They have been supportive and demonstrated a real understanding of the challenges that face a growing business. Their practical approach has added value to our development and, business matters aside, we have enjoyed working with them.”

Advisors: Legal Advisor (Capital Law- Tom Kelleher, Jordan Thomas and Catherine James), Corporate Finance Advisor (Grant Thornton- Gareth Davies, Arthur Munro-Faure and Angela Haygarth), Vendor Financial Due Diligence (Crowe- Bob Alsop), Vendor Commercial Due Diligence (Fairgrove- Patrick Woodrow).

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