Michelmores has advised the shareholders of Fargo Systems (“Fargo”), a developer of SaaS products to assist with planning and operations in the shipping and road transport sectors, on the private equity investment in Fargo by August Equity (“August”).
This latest transaction follows Michelmores having acted for the management team on the management buyout of Fargo in 2022, a deal which won Small Deal of the Year category at the Insider South West Dealmakers Awards 2023.
Fargo, whose product development is based at the firm’s innovations centre in Exeter, with support and implementation teams based in Ipswich, is the market leader in TMS software for containerised cargo. It has long-standing relationships with several global logistics businesses, and its software is used across 22 countries. Fargo provides mission-critical cloud software that enables logistics customers to plan, execute, and optimise the movement of goods, providing tangible benefits for its customers in terms of automation, cost, and ESG, as well as ensuring compliance with regulations.
August is a mid-market private equity fund that invests in service-orientated companies in high-growth sectors, including healthcare, education, business services and technology. August will provide funding to enable the business to continue to scale internationally and expand its service lines for customers.
August will invest in the continued organic growth of the business, supplemented with targeted M&A into adjacent service lines and geographies. Fargo represents a strong adjacency to previous August investments in mission critical compliance-driven software businesses.
The Michelmores team advising on the deal was led by Partner Francesca Hubbard, alongside Associate Shafi Choudhury, Senior Associate Chris Smedley and Solicitor Dan O’Sullivan, all from the Firm’s Corporate team, with specialist input from Senior Associate Anthony Reeves (Tax), Senior Associate Danielle Collett-Bruce (Banking) and Associate Matthew Warren (Employment).
Francesca comments:
“We are delighted to have supported Fargo Systems through this transaction to a successful finish. This milestone investment for the company will enable the business to continue to scale internationally and expand its service lines for customers – we wish Fargo all the best in their continued growth.”
Steve Collins, Managing Director of Fargo Systems, said:
“We’re grateful to Michelmores for its expert guidance throughout the process and thrilled to have the support of August Equity as we continue our journey of growth and innovation. This investment strengthens our position as a market leader in transport management solutions and opens up exciting expansion opportunities, both internationally and in the services we offer. We are excited about the future for Fargo Systems and our customers.”
Michelmores’ award-winning Corporate team of specialist lawyers advises clients across the UK and beyond on capital markets, mergers and acquisitions, management buyouts, impact investing, energy projects, microfinance initiatives and more. Read more on our website.
