Phoenix Equity Partners ("Phoenix"), a leading UK mid-market private equity firm, today announces an investment in Nexus Vehicle Rental (“Nexus” or “the Company”), the leading technology platform for B2B vehicle rental in the UK, alongside the current management team, led by CEO David Brennan, MD John Ellis, and CFO Ian Cherry. The transaction values Nexus at £142 million.
Nexus connects corporate customers with vehicle rental companies through its proprietary online booking and rental management system, IRIS. The system provides Nexus’s 1,000 corporate customers with access to over 550,000 vehicles sourced from 220 rental companies across 2,000 locations. Customers value this service highly; it provides guaranteed vehicle availability, often at short notice or in remote locations, and enhanced reporting and employee compliance, whilst helping to reduce rental spend. For rental companies, Nexus provides access to valuable incremental volumes that are otherwise difficult to service.
Leeds-based Nexus was established in 1999 and has since achieved impressive growth through its highly differentiated service proposition, industry-leading technology and strong market position. Vehicle rental is increasingly playing an important role in the management of corporate fleets. The investment by Phoenix will allow Nexus to continue to increase its penetration of the corporate market and develop its technology platform. Phoenix has acquired a majority shareholding in the company.
Tim Dunn, Partner at Phoenix, said: “Phoenix is delighted to be investing in Nexus, in partnership with its outstanding management team, whom we have known for many years. Nexus offers by far the best solution for corporate customers looking to source vehicles flexibly, through its unique technology platform, IRIS. We are excited to be working alongside David, John, Ian and the team to continue Nexus’s rapid growth as part of the technology infrastructure in this very large market.”
David Brennan, CEO of Nexus, commented: “The investment by Phoenix sets us up for our next exciting phase of growth and innovation as the UK’s leading tech-driven mobility provider, and demonstrates confidence in the business, senior management and wider team to continue our track record of outstanding performance. We are delighted to have Phoenix on board.”
Ares provided debt facilities to support the transaction, and were advised by Dechert. Phoenix was advised by GCA Altium, Travers Smith, EY and PwC.