Maven Invests $6.65m in MBO of Fathom Systems

Maven Capital Partners (Maven) has led the management buy-out of subsea technology firm, Fathom Systems Limited.

The $6.65million investment by Maven in the Aberdeenshire business represents the private equity firm’s 15th portfolio company investment in the energy service sector. In the past twelve months, Maven has invested over $23.5million in RMEC, ISN Solutions, R&M Engineering and achieved an almost four-fold return on investment following the exit from EFC Group.

Established in 2005, Fathom engineers highly specialised underwater communication, control and instrumentation products and services for the fast-growing subsea oil and gas sector. With a turnover of $7.82million and employing 36 people, Fathom is renowned for the quality and reliability of its designs and focus on customer and operational support with a global client base in the areas of commercial diving, ROVs and underwater engineering.

Under the deal, Maven’s clients own a majority stake in the business alongside current managing director, Gareth Kerr, who will continue to lead a strong and experienced management team.

Jock Gardiner, Partner at Maven, said: "We are very impressed with the development of Fathom Systems and look forward to working in partnership with Gareth Kerr and his team to take the business to the next level. Fathom has an excellent reputation for ‘best in breed’ products and service delivery with genuine growth potential. The transaction represents an excellent opportunity for our client funds to invest at an attractive price in a strong brand operating in a robust sector of the energy services market.”

Fathom has recently moved to new, larger premises in Portlethen’s Badentoy Park with office accommodation and a precision engineering workshop to accommodate its growing workforce. Maven’s investment will enable the business to further its international growth and expand its product line into other high-end engineered systems.

Gareth Kerr, Managing Director at Fathom, added: "The Maven deal has come at a perfect time for Fathom Systems.  Over the past year the business has doubled its turnover and staff, and similar growth is expected over the next two years.  We have built a strong brand since the company’s formation in 2005 and this will be the foundation for the next phase in our development. Our reputation for quality products, engineered systems and service has given our clients the confidence to choose Fathom for their new projects and fleet upgrades.  

“With the backing of Maven and the support of a strengthened management team we will exceed client expectations and achieve our growth ambitions both in existing and new markets.”