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Private Equity Investor Inflexion Acquires Marlowe PLC’s GRC Division

Private Equity Investor Inflexion Acquires Marlowe PLC’s GRC Division

As reported by Insider Media, private equity investor Inflexion has acquired the GRC division of Marlowe PLC, including WorkNest and CQC Compliance Limited.

Greg Bamber, founder of CQC Compliance Limited, and now Chief Executive of the HLTH Group commented “We are pleased to see that CQC Compliance has continued to go from strength-to-strength since it was acquired by Marlowe PLC, and I’m excited on behalf of our former colleagues at Marlowe and WorkNest to see how their journey continues with Inflextion.”

Transitioning from CQC Compliance Limited in 2022 to join the HLTH Group, Greg and his team now oversee the delivery of comprehensive tech-enabled and person-led healthcare compliance services for hundreds of regulated providers – with solutions ranging from software, e-learning, training, interim management and wider regulatory and compliance support.

Marlowe PLC, an AIM-listed compliance software specialist, has sealed a monumental deal with private equity investor Inflexion, fetching a staggering £430 million. This sale, which represents a premium of 121% on Marlowe’s current market capitalisation of £348 million, signifies a significant shift in the landscape of regulatory compliance services.

The Business Desk reports that “Included in the deal are Worknest, previously known as Ellis Whittam, the Chester based employment and health safety adviser, which Marlowe acquired from LDC in 2020 for £59 million; Vista Employer Services, a Manchester- based business, and CQC Compliance”.

Alex Dacre, Marlowe’s CEO, will depart the organisation to lead the divested business, marking a transition in leadership as the company embarks on a new phase under Inflexion’s ownership. This move underscores Marlowe’s commitment to streamline its operations and unlock shareholder value.

Kevin Quinn, Chairman of Marlowe, emphasised the significance of the divestment, stating, “This divestment represents an excellent outcome for Marlowe and its shareholders and underscores the significant value that has been created through the delivery of our growth strategy.”

Legal advisors, FieldFisher, spearheaded the deal, with David Bowcock and Adam Jones leading the charge. Goldman Sachs and Cavendish Corporate Finance represented Marlowe, while Slaughter and May, EY, and Houlihan Lokey acted on behalf of Inflexion.

Looking ahead, Marlowe intends to utilise the proceeds from the sale to retire debt obligations and return cash to shareholders while continuing to focus on its core compliance service markets. With a refocused strategy and fortified financial position, Marlowe is poised to capitalise on emerging opportunities in the regulatory compliance landscape.

Alex Dacre, departing CEO of Marlowe, remarked, “It has been a privilege to lead Marlowe since its inception and through the Group’s rapid evolution into the UK’s leader in safety and compliance. This divestment represents a significant premium to our market capitalisation and clarifies the Group’s forward strategy to focus on the highly attractive and regulated compliance service markets.”