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Inflexion doubles its money on Tekton

Inflexion Private Equity, the mid-market private equity investor, today announces that it has sold its entire stake in Tekton Group in a trade sale to Sage (UK) Limited for £21million. In 15 months, Inflexion has made a return of 2x on its original £4.6 million investment and an IRR of 66%.

Based in Manchester, Tekton Group, an Enterprise Resourcing Planning (ERP) software provider to the UK construction industry, was originally acquired by Inflexion in December 2006 for £12 million. The transaction included the simultaneous, complementary acquisition of SiteStream Software Ltd, a software supplier to housebuilding companies.

Under Inflexion’s ownership, the company led by Richard Beaton, has invested heavily in its infrastructure; consolidated its operations and expanded its sales force. Profits have increased by 20% and employee numbers have grown by over 60% to more than 90 as a result of the company’s organic and acquisitive growth.

Tim Smallbone, who led the transaction for Inflexion and was a member of the board of Tekton, said: “It has been a pleasure to work with Richard Beaton again 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.”

Richard Beaton, CEO of Tekton said, “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 last 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.”