Wax Digital (Wax), the UK’s leading eProcurement solution provider, has completed its sale to August Private Equity. Clearwater International advised the shareholders of Wax Digital on the transaction which sees Nova Capital exit the business.
Wax Digital is an independent Software-as-a-Service (SaaS) business which delivers Source-to-Pay solutions to mid and large-sized organisations around the world. The company provides 245,000 users in 102 countries with a horizontal solution which serves enterprise customers in e-procurement, usually helping customers to maximise savings in indirect spend, and is the only UK vendor to feature in Gartner reports for eSourcing and Purchase-to-Pay (P2P). Wax Digital’s accessible software solutions are deployed via the cloud and managing tens of millions of transactions annually.
Headquartered in Cheshire in the UK, the company works with clients including Universal, Nissan, Virgin Active, BAE Systems and the NHS. The investment from August Equity will boost existing development plans for own-IP products that already compete strongly against the likes of Coupa, Ariba/SAP, Oracle, Ivalua, Verian and others. In a noisy S2P suite market, the fundamental premise by which Wax Digital is starting to carve out a clever niche is based on delivering solutions where absolute functional capability, ERP and other business application integration become inseparable.
Clearwater International advised Wax Digital on the deal. The team was led by partner Carl Houghton, supported by director Emma Rodgers, associate Oliver Wheatley and assistant director Chiara Pettinichio.
Paul Ellis, CEO, Wax Digital, commented: “We worked with Clearwater International for some time in preparing for the secondary MBO of the business. Having built long-term relationships with the deal leaders, we found their work ethic to be exceptional – the team’s experience added a valuable perspective during negotiations, with high-quality input and clear advice at all key stages of the transaction.
Carl and his team demonstrated a strong understanding of e-procurement and an excellent knowledge of SaaS technology. They delivered an excellent result for all shareholders, working particularly closely with management and the new investors to ensure that there was a strong fit. We enjoyed working with Clearwater International and we look forward to the opportunities that this new investment brings.”
Carl Houghton, Head of TMT, Clearwater International, added: “Wax has developed incredible SaaS IP without the deep pockets of many of its competitors, and still made 2 Gartner magic quadrants. We are delighted for the team which now has a partner and platform with August Equity that can take the business onto a new level in the UK and internationally. This will build on the fantastic support provided by the exiting Nova Capital, which has now realised a significant return after backing Wax from its early days.”