Peter Cullum exits the business as Montagu re-invests

Software house Open GI has been sold in a management buyout backed by Montagu Private Equity, Insurance Times has learned.

The MBO will see non-executive directors Peter Cullum and Andy Homer exit the business alongside silent investors Kenny Maciver, Tony Proverbs and Paul Dyer.

The deal for Open International covers Open GI as well as e-trading platform PowerPlace.

Montagu had led and arranged the MBO of Open International in May 2006, and sold it to investors led by Towergate founder Peter Cullum for £276m in September 2007.

It is understood that Montagu has paid more than the £276m which the business had sold for seven years ago.

Open GI had been preparing for a public flotation for months, and had conducted the first round of investor marketing. But Montagu tabled a last minute bid and the deal closed over the weekend.

“Shareholders and management were considering an IPO but the Montagu offer was sufficiently attractive from both a financial and a speed of execution perspective,” said a source close to the deal.

It is understood that a £262m loan from Lloyds Bank, which financed the 2007 deal and had been due to be repaid at the end of next year, will be repaid in full with new loan facilities arranged by Montagu.

The deal will be subject to regulatory approval.