Sale of Intechnica Holdings Limited
18/01/2023 07:00
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RNS Number : 0450N Mercia Asset Management PLC 18 January 2023
RNS 18 January 2023
Mercia Asset Management PLC
("Mercia", the "Group" or the "Company")
Sale of Intechnica Holdings Limited
Mercia Asset Management PLC (AIM: MERC), the proactive, regionally focused
specialist asset manager with c.£1.4billion of assets under management, is
pleased to announce the profitable sale of Intechnica Holdings Limited
("Intechnica") for a total enterprise value of £14.5million, to US-based
Crosslake Technologies LLC ("Crosslake").
Mercia held a 25.5% direct holding in Intechnica at the date of completion and
will receive cash proceeds of £3.7million, generating an internal rate of
return ("IRR") of 27% and a 1.7x multiple on its current holding value.
Based in Manchester, Intechnica is a leading provider of specialised IT and
technology consulting services for private equity firms. Founded by Jeremy
Gidlow and Andy Still, Mercia first invested in December 2013 through one of
its managed funds and it subsequently became a direct investment in April
2017.
In addition to the direct investment return, three of Mercia's third-party
funds collectively held a further 27.9% providing a blended IRR on investment
returns of 32.0% (2.6x on investment cost). Mercia has proactively supported
Intechnica, building out the Board and then initiating the spin-out of a cyber
security product developed by the founders - Netacea Limited ("Netacea"). Will
Clark, Mercia's Managing Director of Regional Venture, was a board director at
exit and remains on the board of Netacea.
Dr Mark Payton, CEO of Mercia Asset Management PLC, said: "Intechnica is a
great Manchester-based business that, as with all our direct investments, has
been supported by Mercia's regionally managed funds. This full-cash exit
delivers an excellent result for Mercia and allows Intechnica's founders to
focus on the continued growth of Netacea, an increasingly respected global
brand in the cyber threat detection market.
"This is another direct investment exit above holding value, which continues
to support our valuation methodologies."
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 which is part of UK law by virtue of
the European Union (Withdrawal) Act 2018. Upon publication of this
announcement, this inside information is now considered to be in the public
domain.
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For further information, please contact:
Mercia Asset Management PLC +44 (0)330 223 1430
Mark Payton, Chief Executive Officer
Martin Glanfield, Chief Financial Officer
www.mercia.co.uk (http://www.mercia.co.uk/)
Canaccord Genuity Limited (NOMAD and Joint Broker) +44 (0)20 7523 8000
Simon Bridges, Emma Gabriel
Singer Capital Markets (Joint Broker) +44 (0)20 7496 3000
Harry Gooden, James Moat
FTI Consulting +44 (0)20 3727 1051
Tom Blackwell, Immy Ransom
mercia@fticonsulting.com
About Mercia Asset Management PLC
Mercia is a proactive, specialist asset manager focused on supporting regional
SMEs to achieve their growth aspirations. Mercia provides capital across its
four asset classes of venture, private equity, debt and proprietary capital:
the Group's 'Complete Connected Capital'. The Group initially nurtures
businesses via its third-party funds under management, then over time Mercia
can provide further funding to the most promising companies, by deploying
direct investment follow-on capital from its own balance sheet.
The Group has a strong UK footprint through its regional offices, university
partnerships and extensive personal networks, providing it with access to
high-quality deal flow.
Mercia Asset Management PLC is quoted on AIM with the EPIC "MERC".
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