Science Warehouse, a UK-based enterprise and IT services spinout from University of Leeds, was acquired by enterprise producer Advanced Business Software and Solutions for £16.9m ($23.3m).
Mercia will receive $14.5m net of transaction expenses up front. It has booked an immediate realised gain of $830,000 and will generate a 14.2% return on its overall investment of $12.7m.
Founded in 2000, Science Warehouse provides cloud-based procurement software and services to clients from the commercial, government, higher education, public healthcare and housing segments.
The offering is designed to streamline the process for both buyers and sellers, providing assistance with technical requirements such as analytics, contract and tender management.
Mercia Technologies plans to reinvest the cash from the exit into existing and future portfolio companies.
The firm revealed it had made a first direct investment of undisclosed size in Science Warehouse before its initial public offering (IPO) in 2014, subsequently injecting another $5.3m to widen its stake from 45% to 63% the following year.
Science Warehouse was Mercia’s second largest direct investment and had been the most valuable portfolio investment before the IPO.
Mark Payton, chief executive of Mercia Technologies, said: “This £10.5m cash divestment, the third since Mercia’s IPO in December 2014, is further evidence of the group’s ability to grow businesses sourced from the UK regions and then crystallise value for Mercia’s shareholders.”
