inTec Business Solutions t/a the inTEC GROUP is delighted to announce that it has entered into a £7.7 million royalty financing agreement with Duke Royalty. There is additional follow-on funding in principle agreed for further acquisitions.
Formed in 2016, inTEC is highly acquisitive and has acquired seven business to date. inTEC’s underlying businesses have a history of predictable revenue and profitability, providing IT managed services to SME businesses, focusing on both technology and telecommunications solutions.
inTEC is an end-to-end independent technology consultancy helping businesses and organisations understand and see real value from their technology systems and investments. It specialises in the design, implementation, and support of a wide range of cloud services and business applications including I.T. managed services/infrastructure support, hosted collaboration, and communication solutions.
Duke’s investment will facilitate a refinancing of the capital structure in inTEC, consolidating equity shareholding among the founding management team and introducing Duke as the senior lender to support the business’s ongoing M&A strategy.
Duke Royalty is a provider of alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and abroad.
Neil Johnson, CEO of Duke Royalty, said:
“Duke Royalty is rapidly building and diversifying its cash revenue, having entered into two partnerships in the last five days. inTEC has all the qualities of an attractive royalty partner for Duke in that it is an exciting buy & build platform with a track record of growth and profitability. The underlying businesses’ predictable revenue profiles and the increasing proliferation of new technologies among SME clients, makes us confident of the Company’s short and long-term prospects. Our support of this investment reflects our strong belief in the management team’s ability to continue the success achieved to date and the attractiveness of an M&A strategy in this sector.”
Simon Howitt, Chairman of inTEC, said:
“Duke’s investment solution and the team’s appetite for supporting transformational strategies is key to our vision for what we want inTEC to become. By taking on Duke’s capital, we have simplified our balance sheet and set a firm foundation for future growth, both via M&A and organically. We are excited to continue to execute on our clearly defined plan. We are currently negotiating a number of further acquisitions and intend to double the size of the Group when we go into 2022.”
*iTEK Computer Solutions are part of the inTEC Group.