Provider of vehicle valuation data and business solutions to the automotive industry

In May 2012 Montagu Private Equity acquired CAP, in partnership with its management team, from the Top Right Group for a consideration of £170 million.

Founded in 1979 and based in the UK, CAP’s data and information systems serve clients across a broad variety of automotive-related sectors. The business’s best of breed data assets are underpinned by the proprietary ‘CAP Code’, which enables seamless integration of data-sets within a web environment and numerous business workflow tools. CAP’s real time used car values are used as the benchmark for residual values performance across the disposals industry and CAP Gold Book and Gold Book iQ are the leading residual values forecasting tool for the Contract Hire, Leasing, Daily Rental, Finance and Insurance industries. CAP’s vehicle data systems serve a broad variety of automotive sector e-commerce operations, Dealer Management Systems, showrooms and asset management systems throughout the Retail, Contract Hire, Leasing, Finance and e-commerce sectors.

Montagu had been tracking the automotive data market for some time, having previously successfully invested in related businesses including British Car Auctions and Trader Media Group. Montagu was attracted to CAP’s unrivalled market position, its high levels of recurring revenues from long-term customer relationships and its strong cashflows. These features, combined with a motivated and experienced management team, made us comfortable with the business and excited about its growth prospects.

With the support of Montagu, CAP's management team implemented a significant programme of investment and growth, reinforcing the quality of its core services, developing and launching a set of innovative new products, building a consulting business, entering the consumer market, and making a strategic acquisition which also extended the Company’s operations into new European geographies. In the first two and a half years following the acquisition, CAP increased its workforce by over 75% and increased sales by over 40%.

In 2014 Montagu was approached by a strategic buyer, Solera Holdings, Inc., which is a leading global provider of risk and asset management software and services to the automotive and property marketplace, including the global P&C insurance industry.  CAP was sold to Solera in November 2014 for a total consideration of £288 million, delivering a return of 2.0x and an IRR of 32.6%.

Deal details

Deal type: Management Buyout Investment Year: 2012 Country: United Kingdom Status: Realised Value: £170 million Industry Sector: Technology