Software Circle plc bags £16.7m loan for M&A expansion
Deal News | Dec 16, 2024 | Business Cloud
Software Circle plc, a prominent vertical market software acquirer based in Manchester, has achieved a financial milestone by securing a £16.7 million loan facility from Shawbrook. This financial arrangement is designed to simplify the group's capital structure, enabling the company to focus on its expansion strategy of acquiring companies within the UK and Ireland. Since its inception over two decades ago, Software Circle has made significant strides with seven acquisitions. The company embarked on its 'buy and build' programme in 2022, aimed at expanding its portfolio and facilitating business owners' exit strategies. Shawbrook's solution includes a commercial loan and a committed acquisition facility, supporting bond redemption and future acquisition funding. CEO Gavin Cockerill emphasizes the disciplined approach in aligning acquisitions with the company’s culture and maximizing operating cash flow per share. Shawbrook’s collaboration, guided by legal counsel Pinsent Masons and supported by financial due diligence from MHA, ensures the continuity of Software Circle’s growth trajectory.
Sectors
- Software and IT Services
- Financial Services
- Legal and Professional Services
Geography
- United Kingdom – Software Circle plc and Shawbrook are based in the UK, and the acquisitions are primarily focused on the UK and Ireland.
- Ireland – Part of Software Circle’s acquisition strategy includes the region of Ireland.
Industry
- Software and IT Services – The article refers to a company, Software Circle plc, which operates in the vertical software market, acquiring businesses within this industry.
- Financial Services – Shawbrook provided a loan facility, a financial service essential for supporting Software Circle’s M&A activities.
- Legal and Professional Services – Legal counsel and financial due diligence are critical services involved, represented by Pinsent Masons and MHA.
Financials
- £16.7 million – Loan facility amount secured by Software Circle from Shawbrook for M&A activities.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Software Circle plc | Target Company | Company | A vertical market software acquirer focused on expanding through acquisitions. |
| Shawbrook | Lender | Company | A financial institution providing a loan facility to Software Circle for M&A activities. |
| Pinsent Masons | Legal Advisor | Company | Provided legal counsel for the arrangement between Software Circle and Shawbrook. |
| MHA | Financial Due Diligence | Company | Conducted financial due diligence for Shawbrook in the deal. |
| Gavin Cockerill | CEO | People | CEO of Software Circle plc, committed to acquisition strategy. |
| Tony Dean | Senior Director | People | Senior Director at Shawbrook involved in structuring the loan arrangement. |