Planning tech firm sold for £72m

TerraQuest Solutions, the firm which provides land, planning and data technology, has been sold by parent company Mears Group in a deal worth £72m.

The buyer of the firm is a newly-incorporated business controlled by funds advised by Apse Capital.

Mears Group has built the TerraQuest business since 2009, including the contract to redevelop and operate the National Planning Portal – a web-based platform which processes around 90% of all planning applications in England & Wales. In the financial year ended 31 December 2019, the TerraQuest Group generated revenues of £20.9m and a profit before tax of £4.9m.

David Miles, chief executive of the Mears Group, said: “TerraQuest has been a great success story within the Mears Group. Through the provision of both financial and intellectual capital we have created a leading digital and technical services provider to the planning, infrastructure and property sectors across the UK. This transaction secures the next stage of TerraQuest’s development and allows Mears shareholders to realise significant value from this investment.

“The Disposal materially strengthens the Mears Group balance sheet and completes our strategic programme to focus on our core activities of specialist Housing services to local and central government clients. We are also delighted at the support we have received from our relationship banks who, in conjunction with the Disposal, have significantly increased our covenant headroom over the next twelve months.

“Our portfolio of high-quality contracts focused on our core Housing services and the Group’s strengthened balance sheet mean we look to the future with confidence.”