Our corporate team has advised AppCheck on securing a minority investment from LDC, part of Lloyds Banking Group, to support the cybersecurity software company's expansion and continued product development.
Leeds-headquartered AppCheck provides a best-in-class dynamic application security testing (DAST) and vulnerability discovery solution, helping organisations identify cyber security weaknesses across web applications, APIs and IT infrastructure before they can be exploited.
Employing more than 100 people, the firm works with customers across sectors including financial services, healthcare, retail, higher education and the public sector, with clients including JD Sports, Mars Group, Dr. Martens, University of St Andrews and Age UK.
The investment will support AppCheck's continued organic growth, ongoing product innovation strategy, the expansion of its proven capabilities in the UK market and increasingly in overseas markets. LDC is backing the existing management team led by chief executive Lloyd Devey, with founders Gary O'Leary Steele and Matthew Hawnt remaining investors in the business.
The Mills & Reeve team was led by partner and head of Leeds office, Paul Johnson.
Commenting on the announcement, Lloyd Devey, chief executive of AppCheck, said:
"We've spent over a decade building real expertise in cybersecurity and understanding what our customers need. We are proud to be working with LDC and finding a partner that understands both how to scale software businesses and the cyber security market is important. Having them based here in Leeds means we can work together properly as we move into this next phase. I'm excited about what we can achieve together."
Matthew Hawnt, co-founder of AppCheck, said:
"The Mills & Reeve team guided us through this transaction with real skill and commercial insight from start to finish. Their responsiveness and depth of expertise gave us complete confidence at every stage, and we’re delighted to have had them in our corner for such an important deal. We couldn't have asked for a better legal team to work alongside."
Paul Johnson added:
"AppCheck is a fantastic Leeds-based tech innovator that has built real credibility and a strong position in a fast-growing market. It has a clear growth opportunity, and this backing provides a tremendous opportunity to accelerate its ambitious plans.
"The deal also demonstrates the strength of the tech scene and investment ecosystem here in Yorkshire. With its strong regional presence and deep understanding of the sector, LDC is an ideal partner for AppCheck. It's been a pleasure working with Gary, Matthew and Lloyd alongside the team at RSM, and we look forward to seeing what AppCheck achieves next."
Other advisers on the transaction were RSM (corporate finance adviser to AppCheck), KPMG (corporate finance adviser to LDC), Squire Patton Boggs (legal adviser to LDC) and DSW (financial due diligence adviser to LDC).
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