Talos360award-winning human capital management (HCM) solutions provider has chosen to partner with a leading mid-cap private equity firm NRS to support the next stage of its growth.
Co-founded by Stephen Rundell and Thomas Coulter in 2009, the company is one of the fastest growing HR technology providers in the UK. Its proprietary recruiting and engagement technology helps businesses better attract, recruit and retain talent, and is a trusted partner to more than 700 businesses. Clients range from SMEs to blue chip organizations and include big names such as Easyhotel, The Entertainer, Homebase, Graham & Brown and Purplebricks.
Talos360 has become a market leader in SaaS talent solutions due to the quality of its product and the service its team provides. It has also built a reputation as a people-centric business through its commitment to supporting employees. This was independently recognized earlier this year when Talos360 was named the fifth best workplace in technology by Great Place to Work.
LDC maintains the existing management team, led by CEO Janette Martin and Co-Founder Stephen Rundell, in support of their strategy of organic growth and pursuit of additional acquisitions. Financial details of the deal were not disclosed and it provides an exit for existing investor Tristan Ramus and his team at Twenty20 Capital.
With the support of LDC, Janet and the team will be able to further invest in product development and continue to develop their offering for the benefit of new and existing customers. The partnership will also allow the team to create new opportunities for employees and plans to create more than 50 new jobs by 2025.
The investment was led by John Clarke, LDC’s director of investments in the North West. He was supported by investment managers Camilla Greenwood and Grant Goodwin, as well as Dale Alderson, partner and head of North West LDC.
Both John and Dale will join the board as non-executive directors, with Chris Hermannsen, founder of global talent acquisition and management business Ocher House, joining as non-executive chairman.
Stephen Rundell, co-founder of Talos360, said: “We’re really proud of the business we’ve built and I’d like to thank Tristan and the team at Twenty20 Capital for helping us get to where we are today. Looking to the next stage of our strategy, we see huge potential for further growth and with the team’s track record and sector expertise we are confident that LDC is the partner to help us tap into this.
“We also wanted a partner that would be a good cultural fit. Our employees are our most important asset, and having a partner that reflects the characteristics we look for in our employees – caring, genuine and down-to-earth – was key for us.”
Janette Martin, CEO of Talos360, added: “I am incredibly excited about our partnership with LDC. We share a passion for growing high-growth businesses, and I can’t wait for the team to join us at the boardroom table. It’s been clear since day one that LDC is an investment partner that supports executive teams and supports their strategy, and that’s how we want to operate.
“I am very proud of what we have achieved so far and there is no doubt that we have an incredible opportunity. Our amazing team is full of ideas and we look forward to seeing what we can bring to both existing and new clients. Having a partner that will add value and support us along the way is exactly what we were looking for.”
John Clarke, Chief Investment Officer at LDC, said: “Talos360 is a fantastic business and the management team’s strategy of putting people and customers first has enabled them to create an enviable proposition in the market. There is a real opportunity to build on this, enabling the business to support more clients with their talent development strategies, and we look forward to supporting Janette, Stephen and the wider team on their journey.”
LDC has a strong legacy of supporting the growth of SaaS HR businesses. The private equity firm has successfully supported the growth plans of workforce management software specialist Mitrefinch, helping management to double revenue and increase headcount by 64 percent during the four-year partnership. He also supported HCM software solutions provider CIPHR during a four-year partnership, helping management to double its headcount and achieve compound annual revenue growth of more than 25 percent.
Janet Martin was recently named one of LDC’s 50 Most Ambitious Business Leaders of 2022. This comes after she was named Talent Tech Leader of the Year at the TIARA Talent Tech Star Awards, where Talos360 was also awarded the Talent Tech Scale-Up Award in recognition of the company’s growth.
Houlihan Lokey (Dominic Orsini, James Grundy, Matt Doyle and Ben Levett-Dunn) initiated the deal and acted as lead advisor, providing corporate finance advice to Talos360. Edleshaw Goddard provided legal advice.
LDC was advised by GP Bullhound (Corporate Finance) and DWF (Legal).
ENDINGS
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About the LRCwww.ldc.co.uk/pressrelease
1. LDC is the private equity arm of Lloyds Banking Group and is authorized and regulated by the Financial Conduct Authority.
2. LDC commits to invest in at least 100 medium-sized businesses over the next five years.
3. LDC has a portfolio of 90 businesses across the UK in a wide range of sectors including construction and property, financial services, healthcare, industrial, retail and consumer, TMT, travel and leisure and support services.
4. LDC has a nationwide network of regional offices to provide a local presence to the businesses and communities they support.
