Refinancing of Sponge

Deal typePrivate Equity & Transaction Services
Client nameSponge Group Limited

BDO provided vendor due diligence on the refinancing of Sponge, a leading digital learning provider and portfolio company of Aliter Capital. The group provides training and technology solutions that solve multiple business challenges, from risk and compliance, to people development and skills enhancement.

Since Aliter’s initial investment to create the group in June 2019, Sponge has completed three add-on acquisitions, building an exceptional technology platform that combines best-in-class learning science, user experience and business analytics.  The most recent acquisitions, of Skill Pill in November 2020 and Idox Compliance in March 2021, extending the group into Germany and Belgium, were partly funded using an equity acquisition bridge.  Using such a bridge enabled Aliter to provide the sellers of both businesses with certainty by removing financing risk.  BDO provided vendor due diligence in support of the refinancing of the bridge.

The financing was completed with Shawbrook Bank, and ensures that Sponge has substantial fire power to support further growth organically and through potential, selected further add-on acquisitions.