Quantuma leads on MBO of advertising management software firm

19 December 2018 Consultancy.uk 4 min. read

UK-origin advertising management software firm Miles 33 has completed a management buyout (MBO) as it looks to make the most of growth opportunities in the US. Business advisory firm Quantuma helped oversee the buyout from owner Ares Capital.

A deal backed by Ethos Partners and Santander has seen the completion of the management buyout of Bracknell-based Miles 33 Group from Ares Capital. The supplier of editorial and advertising management software to the media and publishing industries was founded in 1976, and also provides wider corporate marketing automation software to agencies. In addition to its Bracknell headquarters, Miles 33 also boasts offices in in the US, Italy and Malaysia, while employing more than 80 people, and generating earnings before interest, tax, depreciation and amortisation in excess of £3 million.

Moving forward, the management team, led by Mike Moore, will look to expand its US clientele, with The Boston Globe, Maine Today Media and Record Journal amongst its clients. With backing from Ethos Partners and further growth coming from the rollout of its recently developed Gemstone software, as well as increasing sales of its Wave2 software in the wider corporate market, Miles 33’s management team believes it is well positioned to hit its revenue targets moving forward.

Miles 33 CEO Mike Moore commented, “We are looking forward to the next chapter in Miles 33’s history, to roll out our new products to provide best-in-class solutions and service to our customers. We expect to see a new phase of growth organically, and we will continue to look at acquisitions to expand our reach. After a period of ownership transition, we are delighted to have true long-term funding partners who are keen to support our strategy.”

Quantuma leads on MBO of advertising management software firm

The deal was led by a team from consulting firm Quantuma. Led by Partner Ian Barton and Director Adrian Howells, the Quantuma cohort provided advisory services to the management team, including identifying Ethos as the MBO’s equity partner, and finding debt funding from Carmen Peacock and Peter Abel of Santander.

Ian Barton said of the deal, “This highlights the benefits of partnership, and the tenacity by both funders and management in delivering this transaction. Having advised the management team prior to their first buyout in 2005, I have seen it develop its software and geographical footprint and adeptly position the business as one of the global market-leaders in its product offering. We are delighted to have helped management achieve its ambitions alongside Ethos in their first investment.”

Julian Carr, Principal at Ethos Partners, remarked on Quantuma’s involvement, “Quantuma has provided fantastic support and demonstrated a real depth of understanding of the business, drawn from Ian Barton’s long association with the team since 2005, which enabled us to appreciate the potential of the business and also to raise debt funding for the MBO in short order from Santander. We really appreciated the consistent advice and support to get the deal to a close, and we look forward to working together again.”

Other engagements

The corporate recovery and business advisory firm has seen a busy 2018, as a number of previously up-and-coming UK businesses have floundered amid difficult trading conditions. Having been tapped to oversee the turnaround of BCF Plumbing, administration of British-based mobile phone maker WileyFox, and the sale of Chelsea Apps Factory, Quantuma has been working to expand its headcount and bolster its capacity to meet the expanding expectations of its clients.

In October this saw the firm add to a growing list of new arrivals with two new Partners in its London headquarters. A month later, Quantuma further strengthened its South East presence with the launch of a new office in Eastbourne in order to meet rising demand in the region.