A well-known Aberdeen IT entrepreneur has sold a “substantial” stake in his company to a US private equity firm in a transaction worth tens of millions of pounds.
Andy Bird, the founder and chief executive of Aberdeen-headquartered Inoapps, hailed the deal with Boston-based Abry Partners as a “perfect fit”.
The company said it now aims to more than double the number of its employees worldwide to 1,000 by the end of the year.
Mr Bird, who founded Inoapps in 2006, retains joint control of the firm along with Abry.
As part of the deal, the firm’s previous backer, BGF – established as the Business Growth Fund – exits its investment in the IT firm, which specialises in Oracle applications.
Inoapps said the UK-based investor has realised a 4.5x return on the £10 million stake it took in the business in 2013.
Thanks to BGF
Mr Bird gave his thanks to directors who were appointed on behalf of BGF – Kevin Lyon, Bobby Anderson and Mike Sibson – who have now resigned from the Inoapps board.
Abry was founded in 1989 and is focused on investments in media, communications, business and information services in North America and Europe.
Nicolas Massard, partner at Abry Partners, said: “Building on our successful track record in the specialized consulting and managed services sectors, we are excited to team up with Andy, a successful entrepreneur who has built a fast-growing practice around the Oracle ecosystem.”
Mr Bird said: “Since our first meeting I recognised that Abry Partners would be a great partner for our future.
“Abry offers something different – a proven track record of helping technology-based businesses capitalise on both the North American and European markets.
“In addition, the operational support team with experts in various disciplines, made the culture a perfect fit for our next phase of growth as we head towards 1,000 employees by the end of 2022.”
On a growth track
Inoapps said the investment follows a period of “record growth”.
Since the start of 2021, it said its overall number of employees grew 70% – this included a 122% increase in headcount in Asia, 109% in the US, and 43% in the UK.
According to its most recent accounts filed at companies house, the firm had just over 250 employees in the year to end of July 2020.
Turnover was £32.1m and pre-tax profits £1.1m in the same period – which the company said was impacted by covid in the second half as customers delayed investment decisions.
Inoapps added it had also secured its “largest ever global contract win” to supply a global engineering and construction business with a software platform for 19,000 employees across 30 international markets.
Fresh capital
Mr Bird added: “Combined with a new board structure, new capital and our ongoing commitment to excellence, we are set to accelerate drastically our growth throughout North America, Europe and beyond.
“I would like to thank everyone involved in this transaction, as well as Kevin Lyon, Bobby Anderson, and Mike Sibson all who have left our board after great service.”
Richard Pugh, investor at BGF, said: “BGF has been a long-term supporter of Inoapps’ aggressive expansion, driven by a combination of ambitious management, excellent delivery and by always being at the leading edge of the Oracle suite.
“After nine positive years of collaboration, this new investment marked an appropriate moment for BGF to exit and we are sure Inoapps will continue to be successful.”