Target Information

Velociti is a leading provider of mission-critical operational software specifically designed for transport providers, focusing on the bus and rail sectors. The company's innovative software solutions automate intricate staffing, compliance, and routing requirements, enhancing operational efficiency before, during, and after journeys. Headquartered in Bromsgrove, Velociti employs over 100 professionals and operates across various regions, including the UK, Asia-Pacific (APAC), and the Middle East.

Industry Overview

The transport industry in the UK is undergoing significant transformation, driven by technological advancements and increasing demand for efficiency. Bus and rail transport systems are critical components of public mobility, and there is a growing emphasis on improving service reliability and compliance with regulatory standards. With the advent of digital solutions, transport providers are seeking software that can streamline operations, reduce costs, and enhance customer experience.

Furthermore, the UK government continues to invest in upgrading transportation infrastructure, providing a supportive environment for technology providers like Velociti. This investment is aimed at enhancing the overall service quality and modernizing transport systems to meet contemporary demands.

In the competitive landscape of operational software, companies are increasingly focusing on integrating innovative technologies such as artificial intelligence (AI) and data analytics. The ability to leverage these technologies can significantly improve routing efficiency, staff allocation, and compliance tracking, all of which are essential for meeting the expectations of both operators and passengers.

Overall, the growing reliance on software solutions in the transport sector presents substantial opportunities for companies like Velociti to expand their market share and drive innovation.

Rationale Behind the Deal

This investment aims to bolster Velociti's market leadership while supporting its growth strategy through product development and expansion into new international markets. Additionally, it positions the company for targeted mergers and acquisitions (M&A) to enhance its offerings and capabilities. By partnering with existing investors and management, CBPE seeks to leverage its expertise to scale the business effectively.

Investor Information

CBPE is recognized for its commitment to investing in technology services and vertical software businesses. Their portfolio includes notable companies such as Xceptor, The Key, and Mindera, reflecting a strategic focus on sectors that utilize software to drive operational excellence. The investment in Velociti marks a continuation of this strategy, aligning with the objective of supporting established businesses poised for growth.

Velociti is the inaugural investment from CBPE Fund XI, which raised £714 million in March 2025, demonstrating strong investor confidence in the fund’s strategic vision. Fund XI is dedicated to backing growing, cash-generative businesses in the UK and Ireland, particularly those with enterprise values up to £175 million.

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From an expert standpoint, the investment in Velociti appears to be a sound decision with significant growth potential. The transport sector is ripe for disruption through innovative software, and Velociti's focus on critical operational challenges positions it well for success. The ongoing digital transformation trends within the industry indicate a favorable environment for Velociti’s advanced solutions.

Moreover, the collaborative efforts of CBPE, the management team, and existing investors create a robust framework for strategic development. This partnership is likely to accelerate Velociti's product evolution while expanding its presence in new markets.

However, the success of this investment will depend on the execution of its growth strategy, particularly in areas such as product development and M&A activities. If effectively managed, this could lead to substantial returns and a stronger competitive edge for Velociti.

In conclusion, the investment aligns well with current trends in the transport industry, and with the right strategic approach, Velociti can enhance its offerings and achieve significant market traction, making this a compelling investment opportunity.

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