Exits – Cyborg Systems’ healthy return for LDC

Lloyds TSB Development Capital has sold its investment in Cyborg, the UK-based human resources and payroll services company, to Meta4 for between GBP15 million and GBP22 million (EURO24 million-EURO38 million) subject to the acquired business’ performance. This realisation provides Lloyds TSB Development Capital, which is still investing wholly from its parent company’s balance sheet, with an IRR of up to 500 per cent if the consideration reaches the upper limit.

It was only in January this year that Lloyds TSB Development Capital invested GBP4.7 million of equity in the GBP11 million management buyout of UK-based Cyborg Systems Limited from Cyborg Systems Inc of the US. Debt facilities on the transaction were provided by Bank of Scotland and KPMG and Grant Thornton acted as financial adviser to the management team. Cameron McKenna and Brachers Solicitors provided legal counsel. Cyborg Systems Inc took legal advice from Donne Mileham & Haddock.

Meta4 is listed on Easdaq and is a web-based people and knowledge management software company. Cyborg was established in 1987 and employs 150 people throughout the UK.