Inflexion backs Halo Technology

Francesca Veronesi
13 December 2017

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Inflexion Private Equity has taken a significant minority stake in the merger of its portfolio companies ProLabs and AddOn Computer Peripherals.

A source close to the deal confirmed the GP currently holds a substantial minority in Halo Technology, while management retains the majority. New capital was provided by Inflexion when arranging the merger, the source added.

Inflexion acquired a minority stake in ProLabs in June 2017 and AddOn was backed by Inflexion in November.

Capital for the transaction was drawn from Inflexion Enterprise Fund IV, which held a final close on £250m in May 2016. The vehicle typically provides equity tickets of between £10-20m.

Inflexion invests £10-150m in mid-market companies via majority and minority investments. It is currently investing its £650m Buyout Fund IV, £400m Partnership Capital Fund I and £250m Enterprise Fund IV.

Company
Founded in 1999, AddOn provides compatible network upgrades and connectivity products.

Founded in 2004 and headquartered in South Cerney, Gloucestershire, ProLabs is a provider of optical transceivers that are installed in data centres used by home broadband service providers. The company's clients include financial and telecommunications services in the US, Europe and Asia. According to publicly available documents, ProLabs generated a turnover of £18.5m in the year ending in March 2016, with EBITDA before exceptional items of £4m.

People
Inflexion Private Equity – Tim Smallbone (head of enterprise).
Halo Technology – Stewart Holness (executive chairman).
ProLabs – Ward Williams (CEO).
AddOn Computer Peripherals – Patrick Beard (director of technology).