Mercia Technologies PLC £5.0million syndicated investment into Intechnica (1486Z)
13 December 2017 - 6:00PM
UK Regulatory
TIDMMERC
RNS Number : 1486Z
Mercia Technologies PLC
13 December 2017
RNS 13 December 2017
Mercia Technologies PLC
("Mercia" or the "Group")
Mercia invests GBP3.5million as part of a GBP5.0million
syndicated investment into Intechnica
Mercia Technologies PLC (AIM: MERC), the national investment
group focused on the funding and scaling of innovative technology
businesses with high growth potential from the UK regions, has
completed a GBP3.5million direct investment into Intechnica Limited
("Intechnica"), a rapidly growing Manchester-based business that
provides scalable software solutions to manage high and variable
website traffic demand, including the removal of unwanted traffic
from bots, crawlers and spiders.
Mercia's investment is part of a GBP5.0million funding round
alongside existing private investors and takes the Group's direct
shareholding to 24.3%. The round includes a GBP1.3million
convertible loan facility which is also being provided by Mercia.
This facility is subject to the achievement of certain future
performance milestones by Intechnica.
This investment will enable Intechnica to scale its
TrafficDefender product suite. Typically, over half of website
traffic is automated non-human activity*. Internet bots perform
repetitive tasks at a much higher rate than is possible by humans
and can overload websites with unwanted traffic. In addition, key
events caused by promotions and seasonal sales etc. can also
overload websites making them inefficient, which results in costly
down times and a poor customer experience. TrafficDefender manages
both human and bot traffic to ensure continual positive customer
interactions.
With revenue growth of over 150% during the last 3 years, the
company has already developed a high-profile client base including
Ted Baker, ao.com, Pets at Home and Avis. This latest funding will
be used to boost its sales and marketing resources, including
overseas expansion.
Jeremy Gidlow, Managing Director of Intechnica, said: "We are
pleased to have our long-standing investors reaffirm their support
for Intechnica with this latest fundraise. The capital will allow
us to scale up the delivery of our cloud-based solutions to meet
growing demand in sectors such as online retail, insurance, digital
publishing, gaming and ticketing. It will also help us to deploy
TrafficDefender quickly and effectively to domestic and
international customers, allowing them to manage and analyse high
volumes of online traffic."
Mark Payton, Chief Executive Officer of Mercia Technologies PLC
said: "Intechnica comes from one of Mercia's managed funds which is
led by Will Clark, and invests across the North of England. Working
with management, Mercia's team has helped to build out the board
and broaden the expertise of the management team ahead of the
business becoming a meaningful balance sheet investment for Mercia.
All of us have experienced the frustration of overloaded websites
and TrafficDefender is a working solution to a global challenge, as
product and service retailing continues to move online."
*https://www.statista.com/statistics/670782/bot-traffic-share/
For further information, please contact:
Mercia Technologies PLC
Mark Payton, Chief Executive Officer
Martin Glanfield, Chief Financial Officer
www.merciatech.co.uk +44 (0)330 223 1430
Cenkos Securities plc
Stephen Keys, Camilla Hume (NOMAD and Joint Broker) +44 (0)20 7397 8900
Canaccord Genuity Limited +44 (0)20 7523 8000
Simon Bridges, Emma Gabriel (Joint Broker)
Buchanan
Bobby Morse, Victoria Hayns, Chris Lane, Stephanie Watson
www.buchanan.uk.com +44 (0)20 7466 5000
About Mercia Technologies PLC
Mercia is a national investment group focused on the funding and
scaling of innovative technology businesses with high growth
potential from the UK regions. Mercia benefits from 19 university
partnerships and offices across the Midlands, the North of England
and Scotland providing it with access to high quality, regional
deal flow. Mercia Technologies PLC is quoted on AIM with the epic
"MERC".
Mercia's 'Complete Capital Solution' initially nurtures
businesses via its third-party funds (now with circa
GBP350.0million under management following recent mandate wins) and
then over time Mercia can provide further funding to its 'Emerging
Stars' by deploying direct investment follow-on capital from its
own balance sheet. Since its IPO in December 2014, Mercia has
invested over GBP46.0million directly across its portfolio of
'Emerging Stars'.
This information is provided by RNS
The company news service from the London Stock Exchange
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