The MBO also includes the acquisition of one of its fast growing rivals, SiteStream, which has seen its profits double in the past year.
Inflexion Private Equity has invested £4.6m into Tekton and the buy-out is worth £12m overall.
The private equity company decided to invest following an introduction to Tekton by Carl Houghton of Clearwater.
The deal was further backed by investment from the company’s management as well as £5.3m of debt facilities from HSBC.
Tekton, based in Manchester, are one of the UK’s main providers of Enterprise Resource Planning (ERP) software and employ 54 people.
Inflexion believes that the company are operating in a strong market, one that has grown consistently for the past 15 years, and is likely to continue to expand, particularly in light of the additional building work created by the 2012 Olympics.
Richard Beaton, chief executive of the Tekton Group, said: “We look forward to working with Inflexion and taking the group to the next level of its development as well as the benefits that SiteStream’s incorporation will bring.
“Inflexion’s added financial and strategic input will benefit the company in enabling further market penetration as well as developing and introducing new products into new markets.”
Tim Smallbone and Catherine Richards, who led the transaction on behalf of Inflexion, will both be taking seats on Tekton’s board.
© Crimson Business Ltd. 2007
