A Midland software company is flexing its muscles for major new growth opportunities after completing a £3 million management buyout.
The Redditch-based Lanner Group, which provides of process simulation software for blue chip organisations, has been bought out from minority stakeholder 3i following backing from NVM Private Equity.
And Lanner chief executive David Jones said the deal promised further prosperity for the Worcestershire group following a successful 2009 in the teeth of the downturn.
He said: “We had our best year last year in recent times. We have transformed ourselves to a software products company from a consulting company.
“MVM have funded us with equity at a time when support from the banks has been very difficult and that has guaranteed the deal. They have seen the potential in what we can do.
“We are now recruiting and are looking to bring in some established skilled capability in sales, marketing and research and development.
“We now see growth over the next three to five years. We approached a number of private equity firms last September and had a very good response from the market wanting to invest in Lanner. We made the decision, with 3i’s blessing, to enter into discussions with NVM and we are very pleased with the outcome.”
Mr Jones said Lanner had diversified from a heavy turnover reliance on automotive and related manufacturing. “It is now more like 50-50 between the service sector and manufacturing.”
Lanner Group has rolled out a number of new products over the last three years and works with partners such as IBM and IDS Scheer to deliver their products to customers. End users include Ford, GSK and British Nuclear Group.
James Arrowsmith, who led the deal for NVM, said: “The team at Lanner has done a great job over the past four years in refocusing the business around some market leading products and now has a fantastic platform for growth, based around both a growing demand for simulation and optimisation software and expansion of the product range.”
Lanner was established in 1996 following the MBO of the simulation software division of AT&T backed by 3i. The company employs 35 staff in the UK, US and France.