Duke Royalty: Follow-On Investment into Existing Royalty Partner
Follow-On Investment into Existing Royalty Partner
Duke Royalty, a provider of alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and North America, is pleased to announce a follow-on investment of £3.1 million into existing royalty partner, InTec Business Solutions Limited (“InTec”), to fund its latest acquisition.
InTec is an investment holding company created to execute a buy and build strategy of synergistic companies within the I.T. managed services sector in the United Kingdom and Ireland.
Highlights:
- Duke’s investment will facilitate InTec’s acquisition of Astec Computing (UK) (“Astec”), a profitable I.T. managed services business with a 30 year trading history
- The financing increases Duke’s total investment into InTec to £17.1 million. The terms are the same as Duke’s previous follow-on investment into InTec, including the normal 6% annual revenue adjustment factor
- The acquisition fortifies a key existing competency for Intec, in its expertise of Microsoft technologies, as well as adding to InTec’s growing roster of education customers
Neil Johnson, CEO of Duke Royalty, said:
“We are pleased that InTec continues to execute on their buy and build strategy with this bolt-on investment of a highly compatible I.T. services business. Intec invests in long-term profitable businesses with Astec benefitting from a long standing and loyal customer base that provides attractive recurring revenue characteristics.”
Further information regarding Astec
Based in the South-East of England, Astec is a provider of I.T. managed services, with a focus on Microsoft technologies in the SME marketplace. Astec specialises in digital transformation, cloud migrations and integrated solutions, utilising its Microsoft relationship to deliver high quality services and serve a mix of customers across education, professional services and other verticals. Astec has demonstrated robust performance on managed services in particular, with 99% customer retention and high levels of contracted recurring revenue.
Duke Royalty Portfolio
A full list of Duke’s current Royalty Partners is included for reference on the Partners page of our website: www.dukeroyalty.com/partners
