Manchester Software Circle plc Secures £16.7m M&A Fund for Expansion

Manchester-based Software Circle plc has secured a significant loan facility of £16.7 million from Shawbrook, a leading financial institution. This funding will help streamline the company’s capital structure and provide the necessary capital for potential merger and acquisition activities in the future.

As a key player in the vertical software market, Software Circle has already completed seven acquisitions in the UK and Ireland. The company, which was established over 20 years ago, began its buy and build program in 2022 with the goal of expanding its product portfolio and assisting business owners in executing their exit strategies.

With a focus on advancing its acquisition strategy, Software Circle sought to simplify its capital structure and secure additional capital for future M&A opportunities. Shawbrook conducted a thorough assessment of the company’s long-term goals and devised a two-part solution that included a commercial loan and a committed acquisition facility. This financial arrangement will not only aid in redeeming existing bonds but will also provide the necessary funding for forthcoming acquisitions.

Gavin Cockerill, CEO of Software Circle, emphasized the company’s commitment to strategic and disciplined acquisitions that align with their culture and enhance their overall value proposition. He expressed enthusiasm about partnering with Shawbrook to secure these loan facilities, enabling them to pursue their acquisition strategy efficiently.

Tony Dean, senior director at Shawbrook, highlighted the importance of understanding the business’s objectives and acquisition strategy. He emphasized the tailored approach taken by Shawbrook to structure a solution that provides flexibility and certainty for Software Circle to achieve its growth ambitions. Legal counsel was provided by Pinsent Masons, and financial due diligence was conducted by MHA on behalf of Shawbrook.