Nexus Vehicle Rental, a U.K.-based corporate vehicle rental provider has been sold to Phoenix Equity Partners for $186 million. Bowmark Capital, a mid-market private equity firm had originally acquired the company in 2015. Nexus was first established in 1999 with the objective of connecting vehicle rental companies with corporate customers via their online booking and rental management system. Automating and streamlining the process provided service to over 1000 customers to more than 550,000 vehicles from over 2000 locations through 200 suppliers.
Since Bowmark acquired the company, Nexus has been able to grow its own share of the corporate market by winning contracts for a number of U.K.'s leading brands and supporting them by managing their fleet requirements. Under Bowmark's leadership, Nexus also launched a new service in the heavy goods vehicle sector, the first provider to offer a national HGV rental solution alongside cars and vans through a single, integrated platform. During Bowmark's ownership of Nexus, the company has generated strong revenue growth and more than doubled its profits.
Nexus reported a record of 11,594 vehicles on rent in a single in July, a 58 percent increase on the same period in 2017. The growth has allowed the company to hire more employees, rising 12 percent to 126. Their mobility platform IRIS offers complete transparency of the entire rental process from the customer and supplier perspective. From live reservations including mileages, to damage claims and invoicing, their service on average helps clients reduce rental costs by 20 percent. The sale has earned Bowmark funds of over three-times the original cost. New owners Phoenix specializes in investing in fast growth companies in the U.K., and backed with experienced entrepreneurial management teams, they plan on taking Nexus to the world class level.