TCS is the supplier of leading corporate tax software, Alphatax, and provides associated support and professional services to large corporates and accounting professionals across the UK and Ireland.
Founded in 1985 by chief executive Robert Davies, TCS generates close to £13m in revenue, the majority of which comes from recurring software licenses.
The Business Growh Fund (BGF) is participating in a £55m fundraising round alongside new senior debt facilities of £20m to support the acquisition by Eco City.
BGF is providing a £10m structured investment to support the long-term growth of the combined group, alongside funding from a consortium of institutional investors led by technology merchant bank MXC Capital, who originated the deal, and additional debt facilities.
Stephen Welton, chief executive of BGF, said: “We are delighted to be supporting the team at Tax Systems Plc as they embark on growing the business and investing in its people, platform and services.
“This is the first investment we have announced following the referendum vote, and a clear demonstration of our pledge to support UK businesses.
“Now is not the time to put the brakes on. Now is the time to continue backing entrepreneurs with our £2.5bn of investable capital. That is something we are absolutely committed to doing.”
The business plans to operate under a new name – Tax Systems plc – and build a UK tax automation and compliance software business of scale through organic and potentially acquisitive growth.
Gavin Lyons, partner at MXC Capital, will take on the role of executive chairman of the combined group.
Our BQ Bulletin emails will land in your inbox at 7.30am, Monday to Friday, with a mix of the latest local business news, national news, and features to inspire you. Sign up here!
Click here to read our privacy statement