Finance firm bought in £11m deal

Jonathan Diggines, Enterprise Ventures

Jonathan Diggines, Enterprise Ventures

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Investment group Mercia Technologies has bought finance provider Enterprise Ventures in a £11m deal.

Mercia announced it had acquired the entire issued share capital of Lancashire-based Enterprise Ventures Group Limited.

Enterprise is a leading provider of early stage and growth finance through third-party managed funds in the North of England.

Mercia is paying a total consideration of up to £11.0million, plus net cash.

Enterprise Ventures has successfully built a portfolio of almost 150 equity investments, via its third party funds under management, in innovative companies spanning a range of sectors within Mercia’s focus.

Mercia directors believe that the acquisition of Enterprise Ventures significantly accelerates Mercia’s stated strategy of becoming a national technology investment business, with a local presence in the under-served regions of the Midlands, the North ofEngland and Scotland.

Enterprise Ventures was owned entirely by its senior management team, all of whom are remaining with the enlarged group, including chief executive Jonathan 
Diggines.

He joined the board of Mercia as an executive director on completion.

Enterprise Ventures manages a range of funds, including the £10m North West Fund for Mezzanine and the Finance Yorkshire Business Loans Fund, which provides between £15,000 and £250,000.

The Mercia deal creates an established player that can fuel the burgeoning Northern Powerhouse.

Mercia has already built a portfolio of direct investments through its unique investment model, including the likes of Dreams, Virtual Reality software developers.