Private equity firm Phoenix Equity Partners has acquired the majority shareholding of Nexus Vehicle Rental from Bowmark Capital for £142 million.
Established in 1999, Nexus Vehicle Rental connects vehicle rental companies with corporate customers, providing access to more than 550,000 vehicles across 2,000 locations nationwide, with bookings made via desktop or app.
Since Bowmark acquired the company in 2015, Nexus Vehicle Rental has grown its share of the corporate market, winning contracts for a number of the UK’s leading brands.
Earlier this year Nexus Vehicle Rental reported its fourth consecutive year of double-digit growth in both turnover and profit, in a year which saw the company launch into the HGV market and drive more product innovation.
Meanwhile, the company reported a record 11,594 vehicles on rent in a single day in July, representing a 58% increase on the same period in 2017.
The first half of the year saw the business expand its Leeds headquarters, with employees rising 12% to 126, providing additional services for customers.
Phoenix specialises in investing in UK fast growth companies, backing experienced and entrepreneurial management teams to build world-class businesses.
Phoenix will take two seats on the Nexus board. Tim Dunn, partner at Phoenix, said: “Phoenix is delighted to be investing in Nexus (Vehicle Rental), in partnership with its outstanding management team, whom we have known for many years.
“Nexus (Vehicle Rental), 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 (Brennan), John (Ellis), Ian (Cherry) and the team to continue Nexus’ rapid growth as part of the technology infrastructure in this very large market.”
David Brennan, CEO of Nexus Vehicle Rental, added: “We have enjoyed working closely with Bowmark since their investment in 2015 and are proud to have delivered such a strong track record of growth and innovation in that time.
“Phoenix’s investment in Nexus (Vehicle Rental) now sets us up for our next exciting chapter of growth 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.
“John Ellis, Ian Cherry and I will continue in our existing Board positions under the new ownership.”
Nexus Vehicle Rental’s mobility platform IRIS offers visibility of the entire rental journey from the customer and supplier perspective.
From live reservations including mileages, to damage claims and invoicing, it is unique in the industry and on average helps clients reduce rental spend by 20%, it says. Nexus were advised by PWC, Park Place and Squire Patton Bloggs.
Photo caption (L-R): managing director John Ellis, CEO David Brennan and finance director Ian Cherry.