Channel merchant banker MXC Capital has splashed £4.8m on a minority stake in big data analytics minnow Sagacity Solutions - a price tag that matches the software firm’s turnover last year.
The move comes weeks after MXC director Ian Smith told us he wants to place bets behind businesses in software development, managed services and FinTech start-ups.
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With that in mind, LSE-listed MXC has used existing cash reserves to grab a 19 per cent of Sagacity, which sells data science stuff hosted on its Oracle-based QTOX software platform.
Services include data quality, revenue assurance, customer value management and analytics. Clients range from financial services, telecoms and energy, through to the utilities sectors.
Sagacity manages the data these customers generate and then tries to extract something meaningful from it.
MXC has an option to invest another £1m of development capital, and was granted options over a further 7.5 per cent of Sagacity’s total issued share capital.
In the financial year to 31 October, Sagacity reported EBITDA of £1.3m on revenue of £4.8m. It is forecasting sales of £7m and EBITDA of £2m in the current fiscal.
“We believe this technology has a very significant potential and we are excited by the opportunity to take this product to a wider market,” said MXC chairman Peter Rigg in a prepared statement. ®