Inflexion buys minority stake in Systal

The GP is investing via Inflexion Enterprise Fund V, which held a final close in May 2019 on its hard-cap of £400m. The fund writes equity tickets of £10-35m, taking both majority and minority stakes.

Inflexion said in a statement that it intends to support the company's growth in the UK, as well as in international markets.

Systal's CEO, Neil Nicholson, told Unquote sister publication Mergermarket in July 2020 that the company expected long-term contract gains and growing consumer demand due to the pandemic to fuel its future growth. The report added that the company reported run-rate revenues of £30m at the time of publication and had seen turnover increase by 83% in 2019. The company posted revenues of £18.7m in 2019, compared with £10.3m in 2018, according to its latest accounts.

The deal is the second to be announced from Inflexion's latest Enterprise Fund in March 2021; the GP also acquired a majority stake in Insurance Broker DR&P Group via the vehicle. In addition, Inflexion acquired a majority stake in Pangaea Laboratories in March 2021, as reported.

Company
Founded in 2008 and headquartered in Glasgow, Systal provides managed IT network services for companies. Its services include cloud and data centre services, as well as managed security and infrastructure cabling. Systal's clients include Coca-Cola European Partners, WPP and Jones Lang LaSalle, according to a statement. The business employs 168 staff, according to LinkedIn.

People
Inflexion – Simon Turnet (managing partner); Andrew Mainwaring (partner); Abhishek Majumdar (investment director); Alice Lawson (investment executive).
Systal Technology Solutions – Neil Nicholson (CEO).

Advisers
Equity – Alantra (corporate finance); Eversheds Sutherland (legal).
Vendor – Cavendish (corporate finance); Mishcon de Reya (legal).

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• Topics
• Expansion
• UK / Ireland
• Technology
• United Kingdom
• Inflexion Private Equity