15 Mar 2019

FPE Capital (“FPE”) is pleased to announce its successful sale of Kallidus Holdings Limited (“Kallidus”), a leading human capital management and e-learning software as a service (SaaS) provider. The original buyout of Kallidus will generate a 3.0x MoC and 31% IRR return for FPE funds, which in combination with funding for a subsequent bolt-on achieves a blended return of 2.7x MoC and 34% IRR over the four-year investment period.   


Headquartered in Cirencester, UK, Kallidus has grown rapidly under FPE’s ownership, including through the bolt on acquisition of Advorto, a SaaS recruitment provider, in September 2017. Kallidus is being acquired by GMT, which has a strong knowledge of the sector having previously invested in Seagull, a maritime e-learning and technology platform. 


FPE, which completed the raise of a new £101m fund in October 2017, partners with high growth UK-headquartered technology-enabled SMEs, including those in the software and human capital management sectors. It invested into Kallidus in April 2015 to fund further organic growth of the core business and subsequently funded the investment for the bolt-on acquisition to take the business into the recruitment sector. During FPE’s ownership, Kallidus invested in its SaaS platform to successfully migrate the entire business and customer base to a full multi-tenant solution. FPE’s investment has also enabled Kallidus to deliver significant operational and sales process efficiencies to maximise top line revenue growth. 


Henry Sallitt and Henry Ropner led the investment for FPE and were non-executive directors of Kallidus through-out the period.


Henry Sallitt, Managing Partners at FPE commented: “It has been fantastic to see Kallidus grow and to be part of its development as it has seen the benefits of its major investment into the core software platform and to extend its product offering.  We would like to congratulate the team on their significant achievements in the past few years during our partnership with them, and to wish them continued growth and success.” 


Rob Caul, CEO at Kallidus said: “We are delighted with the support FPE has given us, helping us grow organically and through acquisition. Kallidus is at an exciting stage of its growth story and we believe we will benefit from GMT’s expertise and support in our next stage of growth.”  


Timothy Green, Managing Partner of GMT Communications Partners said: “The successful completion of our investment in Kallidus marks an exciting point in the development of the business as we partner to continue to support the business during the next stage of growth. We look forward to working with Rob and the rest of the management team to continue to deliver world class human capital management and e-learning software as a service.”

 

Alastair Boorman, Partner at Momentum Corporate Finance said: ”Kallidus is an exceptional business run by a high quality management team. We were delighted to be able to provide independent advice to Rob and the team on this transaction. Apse Capital and management have ambitious plans to scale the business in its next phase of growth and we look forward to continuing to support them at an exciting time for the business.” 

 


Houlihan Lokey served as financial advisor, Charles Russell Speechlys LLP as legal advisor, RSM as financial due diligence advisor and CIL as commercial advisor to Kallidus. Capital Law and Momentum Corporate Finance advised the management team.