A high-profile, global player in Computer-Aided Manufacturing (CAM) software, Vero Software a proven track record of reliably delivering critical software solutions to small- and medium-sized manufacturing organizations.

Background:

Vero Software develops and distributes software for aiding customers’ design and manufacturing processes. Its products are geared toward the tooling, production-engineering, sheet-metal, metal-fabrication, stone and woodworking industries. At the time of Battery’s investment, Vero was a publicly traded company on the AIM exchange in London and dramatically undervalued by the market.

Battery’s Impact:

• After running an extensive research project studying the CAM ecosystem, Battery worked with our in-house, executive-in-residence, Richard Smith, to identify interesting players in the CAM market.
• After Battery’s acquisition of Vero Software, Richard Smith assumed the role of CEO at the company, refocusing the business on profitability improvements and acquisitive growth.
• Battery then worked with the company to acquire Planit Holdings in 2011, Sescoi SA in 2012 and Surfware in 2013.

Outcomes: 

Within four years of Battery’s acquisition, Vero became the largest independent vendor in the CAM market through a combination of solid organic growth and strategic acquisitions.

At the time of Battery’s initial acquisition of Vero, the company’s last-twelve-months revenue was roughly $20 million; there was no EBITDA and the company was not growing organically. By 2014, Vero had dramatically boosted its growth: Revenue increased 6x to around $125 million, EBITDA increased from zero to roughly $40 million, and the organic revenue CAGR increased to 10%.

In 2014, Hexagon AB (STO: HEXA B) acquired Vero Software.