MDW Capital advises Sponge Group and Aliter, completing its tenth transaction of 2021

 

London, 23^rd April 2021

 

MDW Capital is pleased to announce the completion of another pan-European financing.  The Firm has advised Sponge, a leading digital learning provider and portfolio company of Aliter Capital. The group provides training and technology solutions that solve multiple business challenges, from risk and compliance, to people development and skills enhancement.

 

Since Aliter’s initial investment to create the group in June 2019, Sponge has completed three add-on acquisitions, building an exceptional technology platform that combines best-in-class learning science, user experience and business analytics.  The most recent acquisitions, of Skill Pill in November 2020 and Idox Compliance in March 2021, extending the group into Germany and Belgium, were funded using an equity acquisition bridge.  Using such a bridge enabled Aliter to provide the sellers of both businesses with certainty by removing financing risk.  Sponge hired MDW Capital to advise on its capital strategy before the add-ons and leveraged MDW’s long-standing track record of raising finance in the technology services and software sectors to refinance the bridge.

 

The financing was completed with Shawbrook Bank, and ensures that Sponge has substantial fire power to support further growth organically and through potential, selected further add-on acquisitions.

 

Andrew Busby, Founding Partner of Aliter commented “MDW Capital have been a great partner for Sponge and Aliter. Their business-focused approach, with a strong emphasis on understanding companies’ commercial strengths, key attributes and wholistic funding needs is matched by the quality of their skill in articulating the credit story to funding partners and negotiating the best possible terms.  With their hands-on style and deep understanding of the borrower’s and our own needs, MDW worked as an integral part of our deal team.  More importantly, they have delivered a superb outcome for us, creating a capital structure that blends high flexibility and future growth funding.”

 

Andrew Aylwin, Managing Partner at MDW, remarked “Under Aliter’s ownership, Sponge has been transformed into one of the leading players in its market.  MDW’s expertise in navigating the complexity of funding add-ons and financing the enlarged group enabled the business to complete the add-ons at pace, with Aliter having the confidence in the refinancing outcome early-on.  Sponge’s new capital structure has enabled it to repay its bridge funding and provides the Group with a substantial further add-on war chest to continue its accelerated growth.”