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FPE Capital achieves 5.6X NoC on sale of leading Microsoft Dynamics 365 Partner TNP to Node4

Sale represents FPE Capital’s 4th successful exit from FPE Fund II in past 5 months

LONDON – 20 July 2021 – FPE Capital LLP (‘FPE’), the specialist software and services growth investor, is pleased to announce the successful sale of its investment in leading Microsoft Dynamics 365 partner TNP (The NAV|365 People), to Node4, a leading cloud-led Managed Services Provider (MSP). The terms of the transaction are not disclosed.

TNP sells, implements and supports business solutions based upon Dynamics 365 Business Central, Power Apps and Power BI. The largest pure-play Microsoft partner in the UK in this market segment, TNP is based in the UK, with offices in Newbury and Manchester, and operates a support and development facility in Portugal.

Node4 is a leading provider of advanced, cloud-led digital solutions to businesses across the UK. Drawing upon its broad portfolio of managed public and private cloud, security and collaboration services, as well as cloud enablers including colocation and connectivity, Node4 delivers end-to-end hybrid solutions to its customers. Backed by Providence Equity Partners (Providence), Node4 has achieved strong organic growth through significant new customer wins and the provision of an expanding range of information and communication solutions to its existing customers.

The combination of Node4’s expertise in cloud hosting and TNP’s powerful position in the Microsoft eco-system will create a highly complementary platform that will provide an integrated, end-to-end customer experience, with cloud-led solutions that improve productivity and increase agility.

FPE invested in TNP in 2018 and through significant investment into the team, product and sales capability TNP has driven over 400% growth in profitability as the business leverages its technical leadership in this high growth area.

The transaction represents the fourth sale from FPE’s debut institutional fund, FPE Fund II, in the past 5 months. Other successful investments exited are leading drinks market data analytics business IWSR, sold to Bowmark Capital, media software business Masstech, sold to Genstar Capital portfolio company Telestream and most recently testing and assessment SaaS provider Questionmark, sold to Battery Ventures portfolio company Learnosity. Following the sale FPE Fund II has returned all of investors fund commitments.

With the active support of FPE since its investment in 2018, we have built on a strong position in our market segment to grow our number of employees over 100% and profitability by over 400%,

said Paul White, Executive Chairman of TNP.

This announcement is another exciting development in the TNP story. It was clear from the outset that we share a common passion for delivering exceptional service and as part of Node4, we can play a major role in the ongoing growth of the Node4 business and help more customers use technology more effectively to optimise their business processes and improve productivity.

David Barbour, Managing Partner at FPE commented:

The sale of our investment in TNP to Node4 is great recognition of the journey to create a market leading business. The continuing demand from customers to migrate their businesses into software processes and then to see that software hosted securely in the cloud is a theme we have pursued across our entire portfolio, and Node4’s acquisition of TNP reaffirms that convergence. It has been a great experience working with the TNP leadership team over the last three years and we congratulate them and all the employees on their successful combination with Node4. We wish them continued success in the future.”

FPE and the shareholders were advised by GCA Altium (corporate finance), Shoosmiths (legal), Altman Solon (commercial diligence) and KPMG (financial diligence).

For further information, please contact:

For TNP:

Paul White, CEO +44 (0) 7884 438 439

For FPE Capital:

David Barbour, Managing Partner +44 (0) 7770 585 174

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