Smartbox Group builds software and hardware that give non-verbal people the ability to communicate. On 18 March, the Bristol and Malvern-based company secured a new majority shareholder to fund its international expansion.
Verdane, a Nordic private equity firm, has taken control of the AAC technology specialist, acquiring the majority stake previously held by CareTech Group. The transaction reshuffles ownership whilst keeping CareTech involved as a minority investor and bringing Three Hills—a private markets firm focused on entrepreneur-led businesses—into the shareholder mix.
For Smartbox’s management team, the deal represented more than a standard private equity transaction. CEO Dougal Hawes made clear that the selection process centered on finding an investor aligned with the company’s social mission.
“Choosing a values-driven organisation was essential for us when looking for a partner to help achieve our vision of a world where no one is left without a voice,” Hawes explained. “Verdane stood out by going above and beyond to understand the needs of the AAC community and how Smartbox can support them through our technology and services.”
The management team—Hawes alongside Jarrod, Hannah and Simon—negotiated their equity arrangements with advice from Burges Salmon and Shaw & Co. That legal support proved critical in structuring a deal that balances institutional capital with management ownership.
Augmentative and Alternative Communication technology serves people with speech difficulties or writing challenges, offering them independence through specially designed devices and software. Smartbox has established itself as a global leader in this niche, though the company hasn’t disclosed user numbers or revenue figures.
The assistive technology sector has attracted growing private equity interest over the past three years, with investors drawn to businesses combining social impact with recurring revenue models. Verdane’s move follows a pattern of Scandinavian firms targeting European healthcare technology companies with proven products and international growth potential.
Mark Shepherd, the Burges Salmon partner who led the legal advisory team, worked alongside colleagues Tim Roberts, Harriet Lucas and Claire Withers to structure the management equity component.
“It has been an absolute pleasure to support Dougal, Jarrod, Hannah and Simon on this landmark transaction,” Shepherd noted. “Smartbox is an exceptional business with a powerful mission, and Verdane’s investment represents an exciting next chapter in its growth. We were delighted to work closely with the management team, alongside Shaw & Co, to help deliver a structure that positions Smartbox for continued success.”
The transaction leaves CareTech stepping back from its previous controlling position whilst maintaining a minority stake. That continued involvement suggests confidence in Smartbox’s trajectory under new ownership, even as CareTech reduces its exposure.
Three Hills specialises in providing bespoke capital solutions to management-led businesses across Europe and North America. Its participation alongside Verdane indicates the deal required multiple capital sources to complete, though the firms haven’t disclosed investment amounts or valuation.
Burges Salmon maintains a corporate and M&A practice spanning multinational organisations, entrepreneurial businesses and high net worth individuals. The firm handles private M&A, public takeovers, private equity transactions and equity capital markets work across UK and international matters.
For Smartbox, the fresh capital arrives at a moment when AAC technology faces both opportunity and challenge. Demand for assistive communication devices has grown, yet distribution remains fragmented across healthcare systems with varying funding models and procurement processes.
Hawes acknowledged the legal team’s thorough approach to protecting management interests throughout negotiations. “Thank you to the whole advisory team for looking out for us and Smartbox through this process,” he said. “We are so glad we decided to work with Burges Salmon and Shaw and Co, no stone was left unturned and no issue considered too small.”
The partnership with Verdane will fund further investment in product development and international market entry. Smartbox’s mission—ensuring no one is left without a voice—now has the backing of institutional capital structured to support multi-year expansion.
What remains unclear is the timeline for that international push. Verdane hasn’t outlined specific market targets or growth milestones, leaving observers to gauge progress through future product launches and geographic expansions.
For now, the Bristol and Malvern operations continue under management that has secured its equity position whilst gaining access to deeper resources. Whether that combination accelerates AAC technology adoption will become evident as Verdane’s investment translates into market action.
