Seraphim Capital achieves excellent return on the sale of corporate spin out TestPlant
Seraphim Capital (“Seraphim”), a leading equity investor in fast growing, entrepreneurial companies, today announced that it has sold its stake in test automation company TestPlant to leading private equity firm The Carlyle Group for an undisclosed sum.
The sale has generated a strong return for Seraphim since it backed a new management team in a corporate spin out in September 2008. Seraphim was the majority shareholder in TestPlant alongside other minority investors and led two funding rounds into the company.
London based Seraphim identified the opportunity to acquire some IP from a listed UK business and through its network found an experienced management team to build the business. TestPlant was formed in 2008 and funded by Seraphim and the buy-in team to acquire the technology and develop operations. Seraphim also introduced business angel and industry expert David Harrison, former EMEA General Manager of Mercury Interactive, now part of HP, which is one of the industry goliaths in the software testing sector.
TestPlant’s ‘eggPlant’ product suite offers a range of easy-to-use software for test automation to help its customers deliver high quality enterprise and mobile applications quickly and consistently. TestPlant’s patented image based approach to functional testing allows its customers to test their applications non-intrusively and from a true user perspective whilst its powerful performance and network emulation products allow developers to easily test applications under a range of volume and network conditions.
TestPlant is headquartered in London with development centres in the USA and UK and sales and support centres in the USA, UK, Germany, China, India and Japan as well as an extensive network of business partners. The company has more than 350 customers in over 40 countries across sectors including financial services, aerospace and defence, TMT, retail and healthcare.
George Mackintosh, CEO of TestPlant said: “We are delighted to welcome Carlyle as our new partner given their global presence and wealth of experience supporting high growth software companies. We thank the team at Seraphim Capital for their hands-on support which has enabled TestPlant to grow so strongly in the past.”
Paul Thomas, partner at Seraphim said “This is the fund’s second successful spinout. TestPlant is a textbook example of the Seraphim model to identify growth technologies then to work closely with entrepreneurial teams to build exceptional businesses. Under Seraphim’s ownership, TestPlant increased revenues over ten-fold, through the focus and talent of an outstanding management team. We wish them continued success with Carlyle.”
Seraphim was advised on the transaction by Redwood Capital Group and Mishcon de Reya.