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NorthEdge makes 3.1x on sale of Jigsaw24 to Alcuin

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NorthEdge Capital has sold UK-based IT business Jigsaw24 to Alcuin Capital Partners, generating a 3.1x return.

Financial details of the transaction remain undisclosed, though the business generated EBITDA of more than £4m in the year ending in May 2017, according to a statement issued by the vendor.

Alcuin is currently investing from the 2015-vintage £150m Fourth Alcuin Fund, which typically writes equity cheques of £2-15m for companies with enterprise values of £5-30m.

As part of the deal, NorthEdge has invested in the spin-out of Pimberly, the information and digital asset management platform launched by Jigsaw24's Matrix Software Development.

Jigsaw24 has undertaken an acquisitive growth strategy under NothEdge's tenure, bolting on Square Group in June 2014, Matrix in November 2014 and Root6 in February 2017. It has also expanded its remit into the commercial and public sectors, from an initial focus on the creative and education segments, and opened a flagship support centre in London in 2014.

The deal was led by Jigsaw24 managing director Roger Whittle, who will become CEO, and finance and operations director John Hughes. Current CEO Martin Balaam has divested his stake in the company as part of the transaction and will leave the firm to take on the role of CEO at Pimberly.

Since NorthEdge's initial investment, Jigsaw24 has increased its turnover from £60m to £125m, according to the statement, and more than doubled its EBITDA.

The sale is an exit for NorthEdge's maiden fund, NorthEdge Capital Fund I, which closed on £225m in April 2013.

Previous funding
NorthEdge acquired a majority stake in Jigsaw24 in April 2013, marking its second investment from its first fund.

Company
Founded in 1992, Nottingham-headquartered Jigsaw24 is an IT company. It provides and manages equipment and systems to the corporate, education and creative sectors, with a particular focus on software and hardware by Apple, Adobe and Avid. Its clients include Harrods, Disney, KPMG and Sky.

People
NorthEdge Capital – Grant Berry (managing partner); Andrew Skinner (investment manager).
Alcuin Capital - Adrian Lurie (partner).
Jigsaw24 – Iain Ferguson (chairperson); Roger Whittle (managing director, founder); John Hughes (finance and operations director).

Advisers
Vendor – Clearwater International, Carl Houghton, Rob Burden, Emma Rodgers, Daniel Delooze, Kirsten Handley (corporate finance); PwC (financial due diligence); Roland Berger (commercial due diligence).
Equity – Osborne Clarke, Russell Van Praagh (legal); BDO, Richard Rose (corporate finance).
Company – Beyond Corporate, Matt Fleetwood (legal).

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