The 海角视频’s largest private hire taxi firm, Veezu, has announced a major refinancing deal to support its ambition organic and acquisitive fuelled growth plans.
The exact value of the deal has not been disclosed, but runs into tens of millions of pounds, backed by Santander and Tosca Debt Capital.
Newport headquartered Veezu, which was founded in 2013, operated with 4,650 active taxi driver partners during 2019, delivering more than 13 million private hire journeys, which equated to an overall transaction value in excess of £120m.
This performance places Veezu as the largest per hire vehicle taxi company in the 海角视频. As well as south Wales it operates in the south West of England the West Midlands and Leeds.
This year it is forecasting its driver partners, who are self-employed, increasing to 6,000 and journeys reaching 20 millions. It also has a number of acquisition targets on its radar.
Its driver partners pay a fee to have access to Veezu’s passenger bookings though its app and phone booking platforms.
The refinancing deal also provides an exit, although he has retained a small minority stake, for the firm’s original founder Paul Ragan.
Veezu’s chief executive is Pontypool-born Nathan Bowles, 43, who is also founder and chair of one of Wales’ leading recruitment firms in Smart Solutions.
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On completion of the refinance, Veezu has also confirmed the appointment of Alan Peterson OBE as chairman to further support the company’s growth plans.
Mr Peterson, who is currently non-executive chairman of HSS Hire Group and BBI Diagnostics Group, has been involved in a number of public and private x businesses in the 海角视频, Europe and North American over the past 25 years.
Mr Bowles said: “We are grateful to Santander, Gambit Corporate Finance, Tosca Debt Capital and Osborne Clarke [legal advisors] for the time they have taken to understand our business and the belief they have shown in our growth strategy.
"This latest refinance supports our ambition to grow our presence in our existing operating regions and to broaden our position as the 海角视频’s number one hyperlocal journey provider. We were also very pleased that Alan Peterson decided to commit to the Veezu business having worked with us over the past 12 months.
“Alan’s experience and direction has been invaluable over the past 12 months, the management team here at Veezu are looking forward to working closer with him to deliver the vision we have set for 2020 and beyond.
Peter Abel, director of growth capital at Santander 海角视频, said:“Veezu has established a loyal customer base in the 海角视频 thanks to a series of successful acquisitions and organic growth over the last decade. We have worked with Veezu for five years and have seen the company increase its profitability tenfold over that period – capitalising on technological advancements and improving its range of customer services.
“This funding will further support this trajectory and increase the presence of Veezu in new regions across the 海角视频 as well as its existing South Wales, south west, West Midlands and Leeds areas.”
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Gambit Corporate Finance acted as lead advisors on the transaction.
Cardiff-based Gambit were responsible for initiating the transaction, negotiating terms with Veezu’s exiting shareholders and advising Veezu on raising its facilities from Santander and Tosca Debt Capital.
Jason Evans, partner, debt advisory at Gambit, worked alongside partner, M&A, Geraint Rowe, manager Sam Forman and director Simon Marsden.
Mr Evans said: “Veezu has a best-in-class management team which, under Nathan’s strategic leadership, has delivered an exemplary growth track record and is a true market-leader in its sector.
“Veezu is recognised as the predominant independent consolidator in the 海角视频 private hire vehicle market and we are delighted to have acted on the refinancing in what is an exciting and evolving sector.
“Our extensive knowledge of the funder market has delivered a tailor-made debt solution enabling a reorganisation of Veezu’s shareholder base and providing the financial backing for the next stage of its strategic growth, converting its significant acquisition pipeline.”
Oliver Reece, investment director at Tosca Debt Capital, said: “We are delighted to partner with Veezu for the next phase of its growth. Nathan and the team have a clear vision for the future and are well-placed to capitalise on a number of exciting opportunities to take the business to the next level.”
Mr Bowles said the Veezu’s head count at its headquarters in Newport is expected to double.
He added:“Our head office has digital and marketing staff, as well as project managers, accountants and HR professionals, allowing us not only to run the business, but to get a deep understanding of data to forecast demand. Over the next three to four years we expect the current head count of 40 to double.
“We will continue to provide unrivalled customer experience to passengers through significant investments in technological advancements and best-in-class service which will also provide additional opportunities and benefits for our driver-partners to maximise their earning potential.
“We have built a reputation for attracting the best talent and investing in our office and hub employees to co-ordinate the delivery of millions of journeys while keeping the towns and cities in which we operate, moving safely and efficiently. Compliance and safety have and always will remain front and centre for us and this will remain the case.”