Thomas International

Invested:
February 2018

Exited:
Unrealised

Sector:
Business Services

Stage:
Mid (core strategy)

Headquarters:
Marlow, UK

Business:
International provider of psychometric assessment solutions for SMEs

 

Business at the time of investment

Founded in 1981, Thomas International (“Thomas”) is a leading provider of online psychometric assessments, consulting and related products and services. The Company has been delivering assessments to assist SMEs in the recruitment, development and retention of talent for 37 years. Headquartered in the UK, the Company had 81 offices globally with over 75% of sales originating from international markets. More than 2 million Thomas International assessments are completed each year across over 60 countries and in 56 languages. Thomas International was a key innovator operating within a $3 billion global market, providing low cost, easy-to-use solutions to a growing client base.

Investment rationale

The acquisition of Thomas International stems from Palamon’s investment thesis in the substantial growth opportunity that exists for data, analytics and software solutions that enhance operational efficiency and effectiveness of SMEs. The Company is well-positioned to capture the rapid growth in the SME market for psychometric testing through a global distribution strategy, benefitting from a strong and sticky existing customer base, a tremendous digital product and a significant untapped market for the core product range.

Value creation

  • Built out a highly experienced senior team: Recruited Executive Chairman, CFO, COO, CTO and CMO to augment management capabilities.

  • Modernised technology infrastructure: Put ‘digital first’ at the heart of the value proposition through the development of a new platform, Thomas Assess, with a new technology architecture which provided a step-change in usability and the addressable market.

  • Developed a product suite to address a new category “Team Interaction Optimisation": Thomas Connect was developed in response to the global issue of workforce dis-connection and reducing productivity. Built on Thomas’ market-leading people science, Thomas Connect provides actionable insights, in the flow of work, to colleagues and managers of teams to promote more productive interactions. At its heart is a market-leading AI tool that serves as a personal work-place coach.