Web-based learning and performance monitoring software provider, e2train, has undergone a management buy out and is set to expand.
The company, which has its headquarters in Cirencester, already employs 34 people and will recruit more in the coming months
As part of the deal, well-known software entrepreneur John Caines joins the e2train board as non-executive chairman.
Mr Caines is a former chairman of the SWAIN business angel network and associate partner of WestBridge Fund Managers which has managed the £1.2m MBO.
A significant proportion will be bridged into its forthcoming £50 million WestBridge SME Fund.
The remaining funds for the deal came from the management team with debt finance provided by Royal Bank of Scotland.
An established software business, e2train was founded in 2000 and is a leading provider of systems which help large firms deliver e-learning to employees under the Kallidus brand.
It has blue-chip customers across the public and private sectors, including the NHS, The Home Office, Boots and O2.
Rob Caul, CEO of e2train Ltd said: "I am delighted that we have been able to complete this transaction with WestBridge. The fact that WestBridge involves both high-net worth and institutional investors should ensure that we receive more than just equity finance."
John Caines, the former finance director at Westbury Homes, has helped launch or develop more than 80 new businesses and was award the MBE for his services as an entrepreneur.
He said: "I am thrilled to have invested in e2train and to have joined the board as chairman as part of this transaction.
"Rob and his team are both an experienced and well-rounded group of business managers who have consistently grown the business and who I believe will go on to more success. I am delighted to be part of the company's future."
Valerie Kendall, Partner, WestBridge Capital LLP, said: "We believe e2train to be an attractive fast-growing profitable company, well placed in its market to take advantage of the trends towards more efficiently delivered and effective training in larger corporates."
Charles Davey, associate director, Royal Bank of Scotland said: "The company is a well-managed business that has shown that it can thrive in the current business environment."
Andy Charter, director of Gambit Corporate Finance which advised the MBO team, said: "We believe e2train has an excellent management team with a clear strategy to leverage its blue chip client base to grow the business and take advantage of the opportunities within the rapidly expanding e-learning and performance management environment."
WestBridge Capital LLP was formed in 2008 and invests between £1m and £5m in fast growing, profitable UK SMEs.
