IT firm secures investment to fund Newcastle acquisition
A Manchester IT firm has expanded its reach into the North East with its latest acquisition.
InTec has secured £1.65m follow on investment from Duke Royalty, the Aim-listed provider of royalty finance, to fund its acquisition of Opal IT, an IT managed services business headquartered in Newcastle.
This is InTec’s eleventh acquisition since 2016, and the fourth supported by Duke.
It extends InTec’s geographical reach into the North East of England and builds on InTec’s work in both private sector and education IT managed service provision.
Opal was founded in 2008 and specialises in client server, desktop infrastructure, cloud hosting & cyber security and managed support.
Operating mainly in the private sector, Opal serves some large corporate clients including Tesco Bank as well as several educational institutions.
Neil Johnson, CEO of Duke Royalty, said: “InTec is using Duke’s long term, flexible capital to execute on its defined M&A strategy, indeed this is the fourth acquisition that it has made since our initial investment.
“Opal is a strong fit for the existing Group and builds additional scale and competency in InTec’s ability to deliver IT services to several end customer groups.”
The financing increases Duke’s total investment into InTec to £14m with the terms remaining the same as Duke’s previous follow-on investment into InTec, including a starting yield of 13.5% and the normal 6% annual adjustment factor.
