Bowmark Capital, the mid-market private equity firm, has sold Nexus Vehicle Rental (Nexus), the UK’s leading corporate vehicle rental provider, to Phoenix Equity Partners for £142m. The investment generated a return for Bowmark-managed funds of over 3x cost.
Established in 1999, Nexus connects vehicle rental companies with corporate customers via a proprietary online booking and rental management system. This automates and streamlines the procurement process – providing over 1,000 customers with access to more than 550,000 vehicles from 2,000 locations across over 200 suppliers.
Since Bowmark acquired the company in 2015, Nexus has grown its share of the corporate market, winning contracts for a number of the UK’s leading brands and supporting them to manage their fleet requirements. It has also launched a new service in the heavy goods vehicle sector, to become the first provider to offer a national HGV rental solution alongside cars and vans through a single, integrated technology platform. Under Bowmark’s ownership, Nexus has generated strong revenue growth and more than doubled its profits.
David Brennan, Nexus’ chief executive, commented: “With Bowmark’s support, Nexus has made great progress. As well as making significant investment in the business and our people, we have expanded into an exciting new product area through the development of our HGV platform that is providing tremendous opportunities.”
Julian Masters, Bowmark managing partner, said: “We have enjoyed working with David and the team to enhance Nexus’ product offering and accelerate its growth and market potential. As a tech-driven business, Nexus is very much setting the corporate agenda in the vehicle rental market. We believe the business is well-positioned to continue its strong track record with Phoenix, its new financial partner.”
Nexus was advised by PwC. Further information on Nexus can be found at: www.nexusrental.co.ukBack to News