Case Study: TOWER Software Engineering

In June 2006 Quadrant acquired a major shareholding in the unlisted public company, TOWER Software Engineering Pty Limited (TOWER) via general takeover.

TOWER Software Engineering was founded in 1985 and commenced managing paper based records for government enterprises. Over the next 20 years TOWER computerised the record management process developing Enterprise Content Management (ECM) software. TOWER had subsidiaries in the United Kingdom and the United States and offices in Canada, Holland and Ireland.

Quadrant’s rationale for investment was as follows:

High organic sales growth averaging 20% pa
Opportunity to accelerate sales via investment in staff
Very 'sticky' product with greater than 96% retention rate
Global industry consolidation offering exit opportunities
International presence likely to attract global players

TOWER Software Engineering was acquired by Hewlett-Packard in March 2008. Quadrant’s funds achieved a return of 2.0 times money invested and an IRR of 55.7%.

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Case Study: TOWER Software Engineering