Inflexion Private Equity has backed the £12 million management buy-out of Tekton Group, a software provider to the UK’s construction and house-building industries. The terms of the deal include the simultaneous acquisition of complementary business SiteStream.

Inflexion Private Equity has backed the £12 million management buy-out of Tekton Group, a software provider to the UK’s construction and house-building industries. The terms of the deal include the simultaneous acquisition of complementary business SiteStream.

The buy-out team was led by chief executive Richard Beaton, who then headed the takeover of SiteStream for an undisclosed sum.

Inflexion invested £4.6 million in the buy-out in partnership with an investment from Tekton’s management. The deal included £5.3 million of debt from HSBC in Manchester.

The deal was introduced to Inflexion by Carl Houghton of Clearwater in Manchester, who then provided corporate finance advice to the firm.

Inflexion’s investment was managed by Tim Smallbone and Catherine Richards, who join Manchester-based Tekton’s board under the terms of the funding agreement.

Inflexion was advised on the legal issues of the deal by Addleshaw Goddard with Grant Thornton providing tax services. The firm appointed BDO Stoy Hayward and Huntor Consulting to manage financial and commercial due diligence reviews of Tekton.

This is Inflexion’s second transaction within a month following the £13 million management buy-out of Autocruise.

SiteStream’s software assists house-building operations from land buying through production control to sales, marketing and customer care. The company, which employs 28, is based in Farnham, Surrey, and also has a US operation in St Louis, Missouri.

Tekton was unavailable for comment.