Cadence Equity Partners (“Cadence”), together with co-investor Unigestion, is pleased to announce the sale of its holding in Aquam Water Services (“AWS”) together with sister company Orbis Intelligent Systems to CD&R backed Indicor Inc.
The Cadence investment in June 2020 was one of the first, if not the first, UK private equity transactions to take place during the initial Covid lock-down. It seems relatively normal now but the last 3 months of negotiations were conducted, against the backdrop of global Covid uncertainty, exclusively by videoconference, with the first post-completion board meeting taking place in a countryside garden centre.
Cadence was attracted to Phil Walker and Danny Krywyj’s vision of creating a “Digital Water” business – applying smart sensors to water infrastructure to enable greater focus on sustainable water management and by the opportunity for Cadence to help management create and scale a focused, independent business outside corporate ownership.
By using AWS and Orbis’ advanced solutions, utilities can reduce and account for loss of water, understand network asset condition and remotely monitor water abstraction. A perfect example of the type of niche business with specialist know-how and technology, Cadence aims to support.
Under Cadence and Unigestion’s ownership, AWS completed the roll-out of its smart sensors across its entire UK standpipe business. In parallel, the group significantly accelerated R&D and launched the US Smart Cap product as well as the UK Smart Hydrant and Ultrasonic products in the UK. Furthermore, Orbis has expanded the Smart Cap’s core capability in Leak Detection into Pipe Condition Assessment.
The group has also achieved significant organic growth and is positioned for substantial further development, particularly in the US, where Orbis already serves multiple municipal water companies, from a standing start two and a half years ago.
With the sale, the group more than doubled its enterprise value, achieving attractive returns for Cadence and its investors who include Headway Capital Partners, CF Private Equity and Yana Investment Partners.
Cadence Equity Partners
Cadence Equity Partners (www.cadence-ep.com) is an independent and entrepreneurial private equity firm investing in technology enabled businesses in the UK mid-market. As a long term, supportive and engaged investor, Cadence partners with ambitious management teams seeking an aligned investor to help accelerate growth.