TPXimpact acquires Digital Services agency RedCortex
TPXimpact is a world-class creative technology group, assembled for innovation. Configured as a lean, fluid and ego-free family of complementary tech-focused companies, they collaborate with brave organisations to ensure their participation in tomorrow, and beyond. TPXimpact floated on the AIM index of the London Stock Exchange in December 2018, creating a group of digitally-native technology services companies assembled to meet the needs of the fourth industrial revolution.
Cardiff-based RedCortex, founded in 2016, is a leading technology services supplier to the Welsh Public Sector, particularly focused on healthcare and transport alongside Government and local authority projects in the region. Clients include NHS Wales, the Welsh Government, Transport for Wales and a number of Local Authorities as well as other public sector institutions outside of Wales.
ABOUT THE DEAL
The acquisition strengthens TPXimpact’s existing foothold in the Welsh Public Sector and continues the business’ strategy to build regional hubs across the UK. RedCortex also extends TPXimpact’s Microsoft stack capabilities, holding Gold Partner status across multiple disciplines. RedCortex has experienced strong growth over the last two years and successfully delivered revenue of £4.5m and adjusted EBITDA of £0.8m in the 12 months to 31 August 2021. TPXimpact is paying total consideration of £13.555m with £6.355m being satisfied in cash and £7.0m by the issue of new ordinary shares.
Neal Gandhi, Chief Executive Officer of TPXimpact, said: “Bringing RedCortex’s extensive experience across the healthcare, transport, education and local authority sectors into TPX enhances even further our ability to continue delivering impactful change. RedCortex’s apprenticeship programme is a very exciting addition to our long-term HR strategy and contributes towards our ESG vision of kickstarting digital careers. While we have an existing presence in Wales through our acquisition of Arthurly, the addition of RedCortex to TPXimpact will consolidate our position in what is a very attractive market for digital transformation, allowing us to bid for larger government contracts and continue delivering strong organic growth.”
We acted as financial adviser to TPXimpact on their acquisition of RedCortex.