Mercia pays out in full on EV deal

Tech investor Mercia Technologies has paid out the maximum deferred consideration to Enterprise Ventures Group shareholders, after the Manchester-based business smashed its target in the two years since it was bought.

The original deal saw £9m paid up front – £8.3m in cash and £0.7m in shares – with up to £2m more to be issued in Mercia shares if Enterprise Ventures was awarded at least £80m in net new fund mandates during the two-year period. It has been awarded £178m since March 2016.

Dr Mark Payton, chief executive of Mercia Technologies, said: “Today’s announcement of the significant overachievement of the Enterprise Ventures’ deferred consideration target is another milestone in Mercia’s evolution and demonstrates the group’s ability to identify, evaluate, price, acquire and successfully integrate value-adding acquisitions.”

Enterprise Ventures’ former chief executive Jonathan Diggines, who joined the board of Mercia two years ago, has decided to relinquish his Mercia directorships.

He will continue to work with the team at Mercia Fund Managers as a member of Mercia’s numerous funds’ Investment Committees, and will chair the new £45.1m Enterprise Ventures Growth II fund, which closed in December.

Payton added: “I would like to take this opportunity to thank Jonathan Diggines for his significant personal contribution towards achieving the successful integration of Enterprise Ventures into the Group, where it has continued to flourish and grow. Jonathan’s continuing involvement within Mercia can only be a catalyst for further investment success in the future.”