Business Growth Fund invests £6m in Petrotechnics
Funding for software company marks fifth investment for the financing firm in the oil and gas industry
The Business Growth Fund (BGF) has announced a £6m investment in the oil and gas software and services business, Petrotechnics.
Founded in 1990 and based in Aberdeen, Petrotechnics specialises in improving frontline performance and risk management in hazardous industries.
With offices in Houston, Saudi Arabia and Singapore, over 100 staff and services used by 50,000 customers from major business in the industry such as BP and Shell, the company says the finance will be used to boost growth and meet its expansion goals.
BGF’s backing will enable Petrotechnics to increase recruitment, enter new geographies and allow it to continue investment in software products such as its enterprise software platform Proscient.
The recently launched Proscient enables clients within the hazardous industry to effectively regulate the safety and efficiency of their workforces.
In return for the funding BGF will take a minority stake in the business and the investing director Mike Sibson will join the Petrotechnics board.
Simon Munro, regional director for the Scotland division of the company expects the investment to be one of many in 2013.
The fund, which invests £2 to £10m in the UK’s small and medium businesses, made Petrotechnics the fourth investment in the oil and gas sector totalling £30m for the Scotland division.
The equity firm also supports various other industries having recently funded businesses such as Wow!, Wear Inns, Bullitt and Camino Leisure Holdings. Last year it invested a total of £120m in 21 businesses.
CEO of Petrotechnics, Phil Murray commented: “We are delighted to have BGF join the team and we look forward to their guidance and contributions in taking our company to the next level of growth.
“We believe there is a big opportunity for customers to significantly improve their operational performance and improve how they manage operational risk.”
BGF’s Sibson added: “The investment is a great fit for BGF, which was established to invest growth capital in the UK’s ambitious small and medium enterprises.
“We are also delighted to be backing Phil and the team, who are genuine experts in their field.”