SME financing package secures Deal of the Month award

THE financing of a Staffordshire IT firm which has developed unique business intelligence software has been selected by judges as TheBusinessDesk.com’s Deal of the Month for November.

TheBusinessDesk.com has joined forces with Birmingham Forward to celebrate the region’s deals and dealmakers. The Deal of the Month award is bestowed on the MBO, IPO, takeover, financing or restructure that in the opinion of the judges shows the best combination of regional involvement, creativity and impact.

Connexica Holdings Ltd, based in Stafford, wanted funding to secure the next stage of its growth. It offered potential investors a high return and as such attracted the interest of Midven’s Exceed Midlands Advantage Fund – the £18m fund financed by LDC and the European Regional Development Fund.

After impressing fund managers with their proposals, Midven agreed to pump £250,000 into the firm to help it achieve its growth ambitions.

Connexica’s development of a business intelligence tool called NetSearch allows users to index, enquire, analyse and present large volumes of corporate data very quickly.

NetSearch has been used as part of the NHS Flu Line project to allow instant searches of over 1.8bn records as well as other health organisations such as PCTs, NHS Trusts, Hospital Trusts, and the Department of Health.

Companies in the retail sector are also using the software to analyse levels of fraud, customer behaviour and performance.

Deal judge Darren Walker, associate at law firm Cobbetts, said the investment of Connexica was significant because it represented investment in a high technology industry, a move which was to be encouraged.

Jamie Hope, a partner with Catalyst Corporate Finance, said: “Funding at this end of the market has always been tough. Access to funding is only going to get tougher with issues such as AWM.

“We should therefore support these types of businesses as they are bringing creativity and innovation in the Midlands, the successful ones will only serve to benefit the wider Midlands economy.”

Jackie Hendley, chair of Birmingham Forward and partner at KPMG, added her support.

She said: “This month’s winning deal will provide a welcome boost to other firms operating at this level and looking to fund growth.  Businesses like Connexica are bringing creativity and innovation to the Midlands and should be supported – it is these entrepreneurial businesses that will serve as the employers of tomorrow and bring knowledge and wealth to the region.

“This deal proves that, even with recent government funding cuts, other avenues are still available for start-ups in the technology sector and, as such, the Connexica deal is a worthy winner of this month’s title.”

The judges said other deals worthy of mention included the acquisition of Cwmbran Training College by Worcester-based Resource Group, and the financing of Stoke on Trent based Motiva by Santander – a deal which was advised by Birmingham law firm Martineau.