What’s going on here?
UK-based tech firm Epos Now is considering selling a minority stake to fuel strategic growth. Under the guidance of BNP Paribas, the company aims for a $1.5 billion valuation, eying a deal completion post-summer.
What does this mean?
Epos Now’s decision to offload a minority stake is part of a broader expansion strategy. Owned by its founder and CEO, the company targets private equity firms attracted by its robust product lineup, including payment processing and business management software. Having forecasted revenues of over $100 million and EBITDA around $40 million for the year, following a 25% increase in turnover last year, Epos Now emerges as an enticing prospect in the tech landscape.
Why should I care?
For markets: New horizons in tech investment.
Epos Now’s exploration of partnerships with private equity firms may open new investment avenues in the tech sector, specifically within integrated business services. This strategy exemplifies how tech companies utilize strategic stake sales to accelerate growth.
The bigger picture: Setting the bar for tech valuations.
Epos Now’s lofty valuation target highlights the optimistic market expectations for tech companies offering integral business solutions. This move could become a reference point for valuation in similar future deals, potentially reshaping investor perspectives and market dynamics.