ECI Partners has agreed to sell a majority stake of Fourth to Insight Venture Partners. Financial terms weren’t announced. London-based Fourth provides cloud-based (SaaS) cost control solutions to the hospitality industry. Jefferies advised Fourth/ECI Partners.
ECI Partners today announced that it has entered into a definitive agreement to sell majority ownership of Fourth, the world’s leading provider of cloud-based (SaaS) cost control solutions to the hospitality industry for an undisclosed amount to New York-based venture capital and private equity firm Insight Venture Partners.
Founded in 1999 by restaurant entrepreneurs Derek and Edwina Lilley, Fourth’s real-time software helps restaurants, pubs and hotel groups manage their key costs, labour, stock and purchasing more efficiently. The company has a strong track record of providing innovative software to over 1,200 global customers including Hilton, Hyatt, CenterParcs, Fuller’s, Spirit, Wagamama, Soho House, Jamie’s Italian, Carluccios, the Gordon Ramsay Group and Legoland California. With revenues largely recurring in nature and high levels of customer retention, Fourth continues to lead the market in both innovation and customer satisfaction.
In recent years, Fourth expanded internationally with acquisitions of Adaco, a US-based SaaS business focused on the international hotel sector and Team Hours, a transformational labour productivity business. The London-based company currently employs over 350 individuals globally with sales and development offices in both the US and Bulgaria.
David Ewing, ECI Managing Partner, said “Fourth is another UK success story. It has been a pleasure to work alongside Ben and the team to help Fourth become a world leader in their sector. Derek, Edwina and Ben were looking for a partner who would support the internationalisation of their business and ECI are delighted to have been part of the journey”.
Jefferies International Limited acted as sole financial adviser to Fourth and ECI Partners.
Fourth is the world’s leading provider of cloud-based cost control solutions to the hospitality industry. Our solutions enable you to maximise control, management and as a result, profitability, right across your business regardless of its scale or your location. With you, we’ll configure your Fourth Solution, optimise your insight and decision-making power with Fourth Analytics – and back it all with our great people in a Success-driven Partnership. www.fourth.com