Wales-based safeguarding and child protection software provider the Safeguarding Company is exploring a sale process, EducationInvestor Global can reveal.
This publication has learnt that the company, which generates annual revenue of around £4-5 million and is currently loss-making, is expected to be priced on a revenue-based valuation. Price expectations are likely to be in the region of 5x its annual turnover, according to two sources close to the process.
“The Safeguarding Company is operating in a niche sector that presents several challenges including strong competition from more established businesses such as CPOMS,” one of our sources said. “Despite its successful suite of software, the company has not achieved a profit yet because it has intensively invested in growth and expansion.”
“This sale process is likely to attract several trade buyers that are operating in a complementary segment and possibly some small private equity firms,” a second source added.
Educational software provider Iris and educational services company Tes are likely to be among the prospective bidders, according to our sources.
The Safeguarding Company was backed by venture capital firm Octopus Investments, which injected £3.2 million in the business in September 2019, deploying capital from its Apollo Fund.
Established in 2014 as One Team Logic by former senior police officers Martin Baker and Michael Glanville, the Safeguarding Company provides schools and organisations in the UK with software, training and consultancy to prevent and eliminate children’s abuse and neglect.
Its software suite includes MyConcern, which allows to report, manage and record concerns and create customised aggregated reports based on types of concern, time frame and profile; Confide, which helps manage allegations about staff; and Clarity, which identifies risks and trends with the aim of putting in place early help and preventing escalation. The business rebranded as the Safeguarding Company in September 2021.
Date Published: 23 May 2022