After extensive discussions spanning eight months, involving multiple private equity firms and consideration of a trade sale, the decision to partner with private equity, particularly Tenzing, won out.
The management team held a deep-seated desire not to relinquish their creation to a large corporate entity. Their company culture was of paramount importance, and they believed that preserving the same passion and enthusiasm that had driven the company’s success might not have been feasible within a large corporate hierarchy. While they were passionate about continuing to grow the business, the challenge lay in maintaining that same spirit and focus.
The choice of Tenzing boiled down to a human element. CitNOW Group’s management selected Tenzing because they believed it could provide the kind of personal touch they desired.
With some of the other private equity firms they spoke to, they were concerned they’d be working with a different board member after the deal was signed. This continuity of the team at Tenzing was a decisive factor.
Being part of a profitable success story, rather than just a success story, was a big driver for management in pursuing scale with an investment partner like Tenzing.
The team took immense pride in their mission to address significant industry pain points related to trust, transparency, and integrity. By offering user-friendly products for dealerships and countering negative industry perceptions, CitNOW Group aimed to lead the market and revolutionise its landscape.
Boris Huard
CEO at CitNOW Group
With Tenzing as its investment partner, CitNOW Group has successfully executed nine acquisitions, guided by one of Tenzing’s dedicated Acquisitions Directors. Furthermore, Tenzing’s Sales Specialist provided vital support in developing an effective sales process for CitNOW Group’s expansion into the European market. CitNOW Group’s CEO, Geoffrey Page-Morris, received assistance from Tenzing’s Sherpa on special projects to accelerate growth.
This collaboration propelled CitNOW Group into a position of global market leadership, marked by impressive statistics: over 13 million sales opportunities created, 60 million videos processed, and more than 10,000 dealer installations spanning 64 countries. Notably, CitNOW Group emerged as the most widely adopted vendor of automotive software in the UK market, with approximately 75% of predominantly franchised dealerships utilizing at least one of its products.
In July 2022, Tenzing successfully exited CitNOW Group to Livingbridge, achieving a return of 9.6x invested capital and a 74% IRR. Demonstrating continued conviction in CitNOW Group’s growth potential, Tenzing materially reinvested from both Tenzing Fund II and Tenzing Belay alongside Livingbridge, further emphasising our commitment to the company’s continued success.
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