CG Results has advised Phrasee on its significant investment from capital D
- Service: M&A
- Sector: Technology
- Sub Sector: Enterprise SaaS, Digital Marketing
- Engagement Type: Sell Side
CG Results is delighted to have acted as the exclusive financial advisor to Phrasee and its shareholders on the acquisition of a majority stake in Phrasee by capital D, the next generation private equity fund manager investing in disruptive mid-market businesses across Europe. In addition, investment funds managed by Morgan Stanley Expansion Capital, together with a group formed by Keyhaven Capital Partners and family offices invested alongside capital D. The capital D consortium have acquired a 64% stake in Phrasee with the founders and management holding the remainder.
This transaction represents another impressive outcome that CG Results has delivered for fast growth software companies.
Founded in 2015, London-based Phrasee is an AI-powered SaaS platform that revolutionises customer communication through brand language optimisation. Phrasee is disrupting the traditional role of the human copywriter/marketeer using data science and a powerful proprietary natural language generation engine to generate, automate and optimise marketing language in real-time with superior performance.
Phrasee’s platform optimises e-mail, SMS, web and social media campaigns, by providing AI-generated optimised and brand safe language to clients, driving higher open rates, clicks-through and sales. Phrasee’s clients are typically large, well-known enterprises across multiple business sectors in the United States of America and Europe.
As a result of the transaction, the consortium led by capital D will partner with Phrasee’s founders Parry Malm, Vic Peppiatt and Neil Yager to support the Company on the next phase of its impressive growth journey. The capital D consortium plan to support further development of Phrasee’s products across a wider range of customer-journey touch-points and media channels, as well as to enhance its commercial organisation both in direct enterprise sales and customer success, and through establishing software vendor partnerships. This investment will also support Phrasee’s further expansion in the USA, a market already responsible for more than 60% of the Company’s sales.
Parry Malm, CEO, Phrasee, said: “We are empowering brands with the most advanced AI-generated brand language to optimize marketing performance and unify a brand’s customer experience. Our technology delivers millions in incremental revenue, and we are proud to call some of the world’s most recognised brands Phrasee customers. The capital D team brings incredible sector knowledge across AI and machine learning as well as an outstanding commercial network, which we’ve already seen in action during our short time working together. We plan to continue disrupting the way companies communicate with, and market to, customers across all their digital channels and it’s awesome to have partnered with capital D on the next stage of our journey.”
Working with the CG Results' team has been awesome in what has been a predictably, and rightly, intense process involving multiple stakeholders. Ultimately, CG Results helped deliver a fantastic outcome for Phrasee and, importantly, my team. We have identified the best investment partner to ensure the Phrasee rocketship continues its stratospheric journey, and that is in no small part thanks to the CG Results' team working tirelessly on our behalf and always offering sound advice. I’d encourage any SaaS scale-up considering a process to give them a call.