FPE Capital makes second investment from Fund II - double acquisition of Masstech and SGL

FPE Capital, the leading UK growth capital investor, has acquired Masstech and SGL to merge the businesses, which will have global scale and will manage a substantial portion of the digital assets in broadcast news and production. The simultaneous acquisitions of Masstech and SGL creates an extensive, global platform in digital media workflow automation, asset management and archiving. The volume of video content produced globally is exploding, providing content owners such as broadcasters with an increasing challenge around efficient storage and movement of the content through the production and distribution chain.

The merged group will be headquartered in the UK, generating strong profitability on sales of c.£10 million and will offer greater breadth and reach to its broadcast customers by filling gaps in geographical coverage, markets and product lines. The combined entity will manage a substantial volume of dynamic digital assets in Broadcast news and production, providing more than 500 blue chip customers with automated movement and storage of digital video content.

FPE will work closely with the Masstech management team who will run the combined business and its international operations from SGL's headquarters in Fareham (UK) enabling SGL's founders to retire from the business.

Llewellyn John, Partner at FPE, commented: "We are delighted with these two investments and the value and growth prospects that can be achieved by combining them. We see a strong strategic fit in the merging of Masstech and SGL, both companies with a strong reputation for their solutions in this growth market, to create global scale and improved product functionality for customers. We look forward to working in partnership with the Masstech management team to realise the growth opportunities of the combined group across its global operations. FPE has deep knowledge of the drivers of the media technology market through its existing investment in Sohonet, the leading provider of network and connected cloud services to the global media and entertainment sector, and this investment builds on and will benefit from this expertise; following our introduction the two companies have already presented a new product offering together at the NAB trade show."

Joe French, CEO of Masstech, commented: "We are very pleased to be in partnership with FPE who are well respected growth investors. FPE's significant experience of growing specialist technology companies will help realise our growth potential. As a larger, combined group with a strategic investor on board, we are exceptionally well placed to expand in a growing global market."

FPE was advised on the transaction by CIL Management Consultants, Charles Russell Speechlys, RSM Corporate Finance, Intuitus, ABG Corporate Finance and Continuum Ventures; Both Masstech and SGL were advised by Media Asset Capital.

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