London-headquartered private equity firm HgCapital has taken a majority stake in Wigan-based online procurement marketplace Valueworks. Terms were not disclosed, though media reports suggest that HgCapital may have invested £2.5m in Valueworks from its Mercury fund. Launched last year, the Mercury fund specifically targets TMT buyouts in the lower- to mid-markets and is set to raise up to £400m.
Valueworks had revenues of £4.53m last year, 13% higher yoy. It was also very profitable, running a 31% operating margin, almost double that of the prior year. Press reports allude to a current revenue run rate of some £7m. Sounds rather a good find.