Mid-market private equity firm Inflexion Private Equity has sold its entire stake in UK software firm Tekton Group in a trade sale to Sage (UK) for GBP21m.
Mid-market private equity firm Inflexion Private Equity has sold its entire stake in UK software firm Tekton Group in a trade sale to Sage (UK) for GBP21m. In 15 months, Inflexion has doubled its original GBP4.6m investment with an internal rate of return of 66 per cent.
Manchester-based Tekton Group, an enterprise resourcing planning software provider to the UK construction industry, was originally acquired by Inflexion in December 2006 for GBP12m. The transaction included the simultaneous, complementary acquisition of SiteStream Software, a software supplier to house building companies.
Under Inflexion’s ownership and the leadership of chief executive Richard Beaton, the company has invested heavily in infrastructure, consolidated its operations and expanded its sales force. Profits have increased by 20 per cent and employee numbers have grown by more than 60 per cent to more than 90.
Tim Smallbone, who led the transaction for Inflexion and was a member of the Tekton board, says: ‘It has been a pleasure to work with Richard Beaton at this exciting stage in Tekton’s development as well as allowing us to realise a good return on our original investment in a short space of time.’
Adds Beaton: ‘I have been delighted to work with Inflexion in positioning Tekton for its next stage of growth. We have had a rewarding and fruitful working relationship over the past 15 months, which has been reflected in the company’s success during this period, and I am sure this growth trajectory will continue under Sage’s leadership.’
