Manchester’s Software Circle plc secures £16.7m M&A war chest

Investment

Software Circle plc, a vertical market software acquirer, has secured a £16.7 million loan facility from Shawbrook to simplify the group’s capital structure and provide capital for future merger and acquisition opportunities.

Software Circle is a prominent player in the vertical software market, with seven acquisitions completed to date across the UK and Ireland.

Set up over 20 years ago, the software specialist initiated its buy and build programme in 2022 with an aim to expand its portfolio and product offering whilst enabling business owners to fulfil their exit strategies.

Focused on progressing its acquisition plans, the business was looking to simplify their Group’s capital structure and provide further capital for M&A opportunities in the future.

Shawbrook completed an in-depth assessment of the client’s long-term objectives and structured a two part solution incorporating a commercial loan and a committed acquisition facility to facilitate the bond redemption and provide additional funding for future acquisitions.

The 150 game-changing tech deals of 2024

Gavin Cockerill, CEO of Software Circle, commented: “We are committed to maintaining our disciplined approach to acquisitions, ensuring that each addition is aligned with our culture, enhances our overall value proposition, supports our long-term objectives including our primary financial goal of maximising Operating Cash Flow Per Share.

“We are thrilled to partner with Shawbrook in securing these loan facilities. This financial arrangement not only enables us to repay our existing bonds, it also provides us with additional capital to pursue our acquisition strategy efficiently.”

Tony Dean, senior director at Shawbrook said: “The deal team took significant time to truly understand the overall objectives of the business and ongoing acquisition strategy”

“I like to think that this approach and our own team’s expertise enabled us to structure a solution that will provide the flexibility and certainty for the business to continue to deliver on their growth ambitions”.

Pinsent Masons acted as legal counsel and MHA conducted financial due diligence for Shawbrook.

Manchester MarTech 50 firm Vypr expands European footprint

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}