1 April, 2008 – Tekon sold for £21million
The Tekon Group, a Manchester construction and housebuiding company has been bought by software giant SAGE in a £21 million deal.
The deal provides a windfall for Tekton’s founder and chief executive Richard Beaton, who will stay on for a handover period until the end of June.
Finance director Jane Mercer will leave the business, which is based at Freetrade Exchange, Peter Street, at the same time.
Mr Beaton, 50, established Tekton in 2005 then acquired a string of businesses across England and Scotland, followed by one in the US earlier this year.
Tekton – the Greek word for builder – is regarded as Britain’s fastest-growing construction and housebuilding software specialist, with more than 230 clients.
Employing 100 staff, it posted revenues of £8.8m for the year to June 2007 and profits of £2.3m. The business is on course for turnover of £12m for this year with profits of £2.5m.
Sales have been boosted by expansion overseas, especially in Eastern Europe and Canada.
Mr Beaton, a respected north west entrepreneur, was planning to build Tekton into a £50m-turnover business and had an eye on a stock market flotation.
Today he said: "We received an approach from Sage and, when we weighed up the price they were prepared to pay and and their plans for the future of the business, it made sense to sell. The jobs of the staff are safe, which was also very important."
Mr Beaton held a 43 per cent stake and private equity outfit Inflexion had 40 per cent after investing £4.6m just over a year ago. Inflexion has almost doubled the value of its investment as a result of the Sage deal.
The rest of the shares were held by staff and YFM Private Equity.
Sage chief executive Paul Walker said: "Tekton complements Sage’s existing expertise in the construction industry and will broaden our portfolio for medium-sized companies."
Source: Manchester Evening News