Netherlands-headquartered ERP provider Unit4 Business Software has snapped up MentecPlus Integrated Solutions, a company within the BECAP Fund LP investment portfolio of Jon Moulton’s Better Capital, for an undisclosed sum. MentecPlus was acquired by Better Capital as part of the Calyx Group in September 2010 (see Moulton buys Calyx). It represented about 10% of Calyx Group turnover and was budgeted to turn over Eur4.8m in 2012.
For Better Capital and Calyx the disposal makes sense, and indeed was apparently planned soon after the acquisition of Calyx. According to the announcement, the aim is to allow the newly re-branded m-hance (see Mid-market debutante m-hance) to focus on its target vertical markets and “provide funds to support business development and acquisition strategies”. Indeed, in December, m-hance announced that it had hired sector specialist Amanda Grant to its senior management team as market development director, tasked with developing new products and expanding its “vertically focused IP”. It is focusing on non-profit organisations, education, financial services and hospitality and leisure.
Meanwhile, Unit4 makes an important strategic addition to its public sector business. The two companies already had a long-established relationship. MentecPlus is the authorised distributor in Ireland for Unit4’s Agresso Business World (ABW) software, and is a “leading provider of business software solutions to both SMEs and Public Sectors in the Republic and Northern Ireland”. Through MentecPlus Agresso has been implemented in numerous public sector and commercial organisations in the region. MentecPlus has also collaborated with Unit4 on projects internationally. We'd imagine the relationship with MentecPlus had been complicated by Calyx's integration into the Better Capital portfolio. As such, the deal makes perfect sense all round.