Tekton

Tekton Group, the UK’s fastest growing construction software specialist, was acquired by Sage Group plc in a £21m deal, following an aggressive buy-and-build strategy stretching two years.

The business provides complex solutions across the whole construction lifecycle with customers consisting of civil engineers, builders and developers, maintenance and other contractors. Clients include Wates, Bovis Homes and Skanska.

The original platform investment was made through the management buy-out of Intuita and simultaneous acquisition of EVision in late 2005, led by software entrepreneur Richard Beaton, and backed by Yorkshire Fund Managers and HBoS.

EVision’s Build-IT product, based around Microsoft’s Navision offering, complemented Intuita’s portfolio – allowing the group to offer a strong product whatever tier of the construction market a company operates in. Clearwater simultaneously negotiated with and project-managed a wide range of targets, funders and advisers to deliver both deals at competitive pricing.

Tekton furthered its expansion plans with the acquisition of Construction Information Technologies in June 2006. Just six months later, the group completed its third deal in a year – acquiring software house SiteStream from its US owner Mitek Systems in a £12.6 million transaction. Beaton again turned to Clearwater for advice on these acquisitions.

The whole group was re-banked and a new equity partner, Inflexion, brought in to finance the SiteStream deal, giving access to capital for further transactions. The latest deal also allowed a partial release of equity for Beaton, who has bought and sold more than 20 software businesses.

Finally Tekton was acquired in its entirety by Sage in March 2008 following significant investment in the company’s infrastructure & operations, and expansion of the sales force. The acquisition clearly strengthened Sage’s market position in the sector and expanded its range of construction solutions. Clearwater once again drew on its expertise in the IT sector to complete the sale in only 8 weeks from initial negotiation through to final completion.

Beaton commented: “I am delighted with the outcome in what was a fantastic deal for all concerned. This is the sixth time I have worked with Clearwater and each time the performance has been spot on. I will continue to use Clearwater on future deals and would recommend them to anyone."

Tekton is a great example of how Clearwater helps management teams to grow dynamic businesses through acquisition, generate value, and execute successful exits.