FAPI's acquisition of Texthelp supported by debt from GSAM

The acquisition of Texthelp Ltd., a U.K.-based education and corporate software provider, by Five Arrows Principal Investments is supported by a debt facility underwritten by Goldman Sachs Asset Management, according to sources.

The firm's key metrics for the year ended Sept. 30, 2019, include EBITDA of £4.9 million and sales of £21.5 million, according to Company House. The North American market is a key growth driver for the company, accounting for 64% of its sales.

At the time of LDC's buyout in 2019, the company was generating £19 million of revenue.

The debt advisor was Axis Arbor, while McDermott Will & Emery advised Goldman Sachs, sources said.

Texthelp has developed a number of software products including Read&Write, EquatiO, Browsealoud and WriQ, which are used in both the education and corporate sectors to help students and employees with reading, writing and numeracy difficulties, including those with dyslexia or working in a second language. Current customers include school districts in North America and Australia, as well as Fortune 500 organizations.