Close Growth Capital has completed the GBP27.8m MBO of Pragma and Real Time, the UK IT services businesses of Sword Group, the listed French IT company.
Close Growth Capital has completed the GBP27.8m MBO of Pragma and Real Time, the UK IT services businesses of Sword Group, the listed French IT company.
As a result of the deal The Amor Group, as the new company will be known, has become the largest independent IT company in Scotland.
Amor has revenues of GBP32m and has 330 staff based in Glasgow, Aberdeen, Edinburgh, London and Houston. Clients include Exxon, BAA, Total, BP, Nexen, Talisman and public sector bodies such as the Scottish government.
Amor has developed and implemented a wide number of innovative technology solutions including a queue measurement platform for airports saving them substantial rebate charges, mobile boarding pass systems for airlines and hydrocarbon accounting software to assist oil companies assign ownership of energy in shared pipelines.
According to James Blake (pictured), director of CGC, who joins the board of Amor, the combined capital approach was vital to the completion of the deal: ‘In these uncertain times access to debt and a provision of flexible debt-like solutions are crucial. Because we’re not reliant on raising substantial amounts of external debt, we were in a very strong position to help the management team of Amor complete their MBO.
‘The management team has a sensible but ambitious strategy for growth. Over the next three years it is committed to increasing turnover to over GBP50m through growth of established services across stable business sectors and through driving quick pay-back software sales into new clients. We were also attracted to the company’s potential to act as a consolidation platform during what we expect will be an exceptional time to acquire small players with specialised knowledge at discounted multiples. Most importantly, we have been very impressed with the quality of both the senior management team and business unit directors.’
In addition to Close Growth Capital and the senior management team of John Innes, Scott Leiper and David Blyth, Amor is backed by regional investment fund Scottish Enterprise and capital provider Clydesdale Bank. Sword Group Plc also retained a minority interest.
John Innes, currently chief operating officer of Sword Business Technology Solutions UK becomes Amor’s chief executive. David Blyth and Scott Leiper have been appointed finance director and chief operating officer respectively. The management team was advised by energy specialists Simmons.
Under the deal, Pragma and Real Time will continue to trade under their own brands with the same management and employee teams.
