Email and SMS marketing company Pure360 today announced a £10.5 million management buyout including investment, to fund future growth and create 65 new jobs in the south east. Scottish Equity Partners (SEP) led the deal investing £6.5m, with the balance coming from Investec and management.
Pure360 is the latest digital media investment by SEP. It joins existing portfolio companies such as Skyscanner, the world’s fastest growing travel search company, online eyewear business Mr Spex, and Media Ingenuity, which specialises in online comparison tools in the financial sector.
Gordon Beveridge who secured the deal for SEP explains: “The funding announced today will extend the capabilities of Pure360’s platform, broadening features within segmentation, geolocation and automation whilst creating the most usable interface out there.
“The company is already a major player in the UK email service provider market and we believe this funding, coupled with our investment experience in the digital media sector, will help Pure360 go from strength to strength.’
The UK market for email marketing platforms and services is forecast to be worth £513 million in 2013. This continued growth is reflected in the inward investment activity within the sector such as Silverpop recently increasing funding and the ExactTarget purchase.
Stuart Dawson, CEO of Pure360 comments: ‘We’re excited by the increased opportunity this investment represents; allowing us to accelerate product innovation and cement a world class client service function.Pure360 has doubled both its turnover and headcount since 2008. The next three years will see a further 65 jobs created with turnover expected to double again to £14.5m.’
Focusing on improving customer results, Pure360 works with customers including The Sunglasses Shop, Hackett, innocent drinks, Virgin, Rightmove and Tetley. Integrations with key business systems such as Salesforce, Facebook and Magento drive better customer insights and email revenues.
Stephen White from Investec added: “Pure360 is a great example of a small but fast-growing UK business, and Investec Growth & Acquisition Finance is delighted to be working with SEP and Pure360’s entrepreneurial management team as they back the company in the next phase of its growth. Our ability to provide both debt and equity finance allowed us to tailor a funding package that provides Pure360 and its stakeholders with the flexibility to support the execution of its exciting growth plans.”
GP Bullhound, the technology investment bank, acted as the exclusive financial advisor to Pure360 on its sale. The transaction is GP Bullhound’s eighth in the Digital Marketing sector in the last 18 months.