BGF exits investment in DriveWorks

BGF has announced the successful exit of its investment in DriveWorks. The Thelwall-based technology business provides innovative design automation and 3D sales product configuration software to manufacturing and engineering companies.

DriveWorks has been acquired by Bechtle AG, a €6 billion revenue technology group, headquartered in Neckarsulm, Germany. The exit has generated a money multiple of 2.7x and an IRR of 32% for BGF.

BGF originally invested £4 million in DriveWorks in February 2021, to support continued development of its software platform, while accelerating international growth. During BGF’s investment period, the business more than doubled revenues, reaching €6.5 million in the 2023/24 financial year.

In addition, BGF introduced Sharon Baylay-Bell to DriveWorks, as Non-Executive Chair, through its Talent Network – one of the largest groups of board-level executives in the UK and Ireland.

Harry Jones, BGF investor, said: “Driven by a passionate management team, DriveWorks has developed a market-leading offering through investment in technology and talent. We’re proud to have supported the company in helping to accelerate its growth plans. DriveWorks is an excellent example of the BGF investment model, which allows us to form long-term partnerships with dynamic companies and confidently invest through the cycle. The result is a positive exit for all parties, and we wish the business every success in the future.”

The fast-growing technology company was co-founded by Glen Smith and Maria Sarkar in 2001. Maria was named on this year’s King’s Birthday Honours List and awarded an MBE for services to manufacturing.

DriveWorks has continued to invest in talent to support its long-term success, with the recruitment of CTO Philip Stears and promotion of Mark Sarkar to Commercial Director.

RSM’s Deal Services team provided sell-side advice on the deal, led by M&A partner James Wild, with support from Clare Martin, Alyssia Kaczmarczyk and Hallam Wilson. Hill Dickinson provided legal advice.

James Wild, Partner at RSM, commented: “We are delighted to have advised DriveWorks on its sale to Bechtle, bringing together two closely aligned businesses in the global IT market. The acquisition will support DriveWork’s sustainable growth ambitions, provide solutions for new markets, and also bolster Bechtle’s existing reputation in the UK.”