The owners of Technical Software Consultants, which makes equipment to test metallic structures for cracks and defects, have sold most of their shareholding to a London-based investment firm.
Encore Capital has completed an investment in Technical Software Consultants (TSC), a designer and manufacturer of non-destructive testing equipment.
Its acquisition of a majority stake in TSC is supported by Octopus Investments, which provided a £3 million facility to fund the deal.
Encore’s investment provides a partial exit for TSC’s two owners, David Topp and Martin Lugg, who will continue as directors and shareholders in the business.
TSC uses its proprietary electromagnetic technique to detect and size cracks in metals. Established in 1984, the company sells its equipment via an international network spanning more than 40 countries.
Shirin Gandhi, partner at Encore says, ‘We have been actively looking for investments within the integrity management space. TSC has developed market leading technologies and has demonstrated rapid international growth through a blue chip customer base.
‘We believe there is exciting potential for further growth with the additional resource and expertise that management recognised they need and which Encore has a track record in helping to source.’
Hugh Costello, investment manager at Octopus, adds, ‘We are pleased to be able to support Encore in their investment into TSC. It is an impressive business, which has a track record of consistently delivering for its customers.’
As part of Encore’s investment, Maurice McBride will take on the role of executive chairman. Commenting on his appointment, McBride says, ‘It was quite clear from my first meeting with TSC and the management team that the future prospects for the business are quite significant and I am looking forward to working with both them and Encore to help exploit these opportunities.’
Encore Capital typically invests between £1 million and £10 million in buy-outs and development capital deals.