Oakley Capital Investments (OCI) has announced that Oakley Capital Fund IV has reached an agreement to sell its stake in Ocean Technologies Group (OTG), an independent software provider to the maritime industry, to Lloyd’s Register. OCI says that the transaction was broadly in line with OTG’s carrying value as at 31 March 2024 and that OCI’s look-through share of proceeds is anticipated to be c.£50m. The exit is anticipated to generate a gross return of c.2.7x money-multiple to Fund IV.

OCI says that, under Oakley’s ownership, OTG has generated strong revenue and EBITDA growth and has been transformed from an e-learning specialist to become a leading global provider of human capital management and operational software to the maritime industry. Today, it provides mission-critical training, compliance, operational and HR software to c.17,000 vessels and over one million seafarers, helping to ensure compliance, drive performance and increase efficiency.

Oakley invested in OTG in 2019 through the parallel acquisition and combination of two e-learning providers to the maritime industry, Seagull and Videotel. OCI says that Oakley saw the opportunity to combine the two companies’ product development and technical resources and to increase investment in software solutions to better serve the multiple needs of a maritime industry undergoing rapid digital transformation. In addition to the original combination of Seagull and Videotel, OTG has completed several strategic acquisitions, strengthening its position in learning & assessment, and increasing its addressable market by diversifying its product offering into new verticals, offering significant cross-selling opportunities. At the same time, Oakley has supported OTG in its technology transition, in recruiting an experienced management team with a blend of maritime and software expertise, and in developing a global, data driven organisation.

Comments from Peter Dubens, Oakley Capital co-founder and managing partner

“We have helped to transform OTG from a single product solution into a diversified, best-in-class platform and partner to the shipping industry, and a small but critical enabler for sea transport and trade. We look forward to seeing OTG’s continuing growth now as part of Lloyd’s Register. Our successful partnership with OTG reinforces our track record in the SaaS space. It demonstrates our ability to leverage M&A opportunities to help software businesses grow and diversify into new markets, and to drive technological and organisational change that delivers transformational growth.”

Comments from Nick Brown, CEO of Lloyd’s Register

“This is a really transformative acquisition for Lloyd’s Register and our clients. For over 260 years we have provided trusted advice on the safety and performance of assets and vessels. The purchase of maritime voyage solutions provider OneOcean in 2022 gave us the digital capability to support and optimise the safe and compliant operations of vessels and now with the acquisition of OTG following its successful transformation under Oakley, we will be able to provide a strategic approach to attracting, developing, managing and retaining maritime professionals at sea and ashore.”