Sector Technology, media and telecoms
Location Manchester, UK
Exit date March 2008
Investment status Realised
Exit details 2x return, IRR of 65%

Tekton

The company

Based in Manchester, Tekton Group was an Enterprise Resource Planning (ERP) software provider to the UK construction industry. Its products, which were used by customers such as Carillion, Skanska and Eric Wright Group, included integrated accounting, resource application and planning tools that are particular to this industry.

We acquired Tekton in December 2006 for £12 million. This included the simultaneous complementary acquisition of SiteStream Software Ltd, a software supplier to construction companies based in Surrey, UK and Missouri, USA.

Growth strategy

Looking to grow market share in the UK construction industry and expand in the US, the Tekton team sought an investor to help fund and guide their growth objectives.

 The Inflexion difference

We were quick to recognise the growth potential in Tekton, and under our ownership the company, led by CEO Richard Beaton, invested heavily in its infrastructure, consolidated its operations and expanded its sales force.

As a result of our investment and strategic guidance, the business saw its profits increase by 20%, while employee numbers grew by over 16%. In addition, in December 2007 we supported the company’s acquisition of Wilcomp, a business and accounting software integrator based in New York. This enabled Tekton to achieve its objective of expanding its footprint within the US.

We sold our entire stake in Tekton to Sage (UK) Limited for £21m, realizing a 2x return and an IRR of 65%.