FPE portfolio company TNP acquires NAV focused assets from K3


FPE Capital’s portfolio company TNP, a UK Microsoft Dynamics NAV and Business Central service provider, has acquired UK NAV focused assets from the administration of K3 Business Technology Groups' Microsoft Dynamics business unit.

The deal was funded in cash at completion from TNP’s balance sheet. “FPE Capital has for some time seen the Microsoft enterprise resource planning software as a growing and powerful offering in that marketplace, and the NAV /business central product family is an important part of that offering,” said David Barbour, managing partner and co-founder of FPE Capital.

Since FPE’s investment in 2018, TNP has doubled customer numbers through its support-led marketing engine to existing users of NAV systems, new business central implementations, and this acquisition, according to London-based growth private equity investor FPE.   

Barbour commented: “As the UK’s largest ‘pure play’ NAV partner with the scale and technical skills that implies, TNP has seen strong organic growth and is well positioned to continue to build its client portfolio as Microsoft encourages customers to move to a cloud hosted environment that smaller competitors cannot serve to the same level, whether organically or through acquisition. We expect the COVID-19 disruption to accelerate this consolidation.”

The transaction gives TNP the ability to transfer over 100 NAV customers to its support platform over time, in Barbour’s view. “This will immediately grow TNP’s recurring annual revenue base from these support contracts but also position TNP as the natural partner for further work and system upgrades from those customers in the longer term, and consolidate their position as the UK’s largest NAV focused partner.”

Specialising in B2B software and tech enabled services investments, FPE partners with UK and Irish companies. “FPE Capital sees the current COVID-19 impacted market as one that will materially accelerate digital adoption and technology spending in all companies. As has been reflected in strong public markets for the software and communications/services sector,” said Barbour.