Castleton Technology bags £4.5m to support social housing associations
Investment from BGF, Barclays and MXC Capital has enabled AIM-listed company to make "critical" acquisition of competitor business Kypera
Castleton Technology PLC has secured £4.5m investment in a combined deal led by the Business Growth Fund (BGF), with involvement from MXC Capital and Barclays.
Based in the West Midlands, AIM-listed Castleton specialises in bespoke software and infrastructure solutions for the public and not-for-profit sectors – specifically social housing – and claims that over of a third of all UK housing associations are on its books.
The investment has enabled the company to acquire Kypera; a competitor management and finance software business to the housing sector, marking its seventh acquisition in the last two years.
Alongside the acquisition; which will help develop its software platform, Castleton has plans to use the investment to potentially acquire other businesses.
Ian Smith, Castleton chief executive, said: “This is a critical acquisition for us. Kypera adds a whole new level to Castleton’s offer. We are now the only integrated, single ERP platform solution able to meet every aspect of our customers’ needs – the only “one stop shop” serving the sector.
“We are pleased to have BGF on board as a strategic long-term partner, whose funding will allow us to unlock further growth in the business.”
The BGF’s Gurinder Sunner added:
“Castleton’s management team has demonstrated its ability to execute an acquisitive and organic growth strategy. We are delighted to be supporting them as strengthen their offering even further with the integration of Kypera.”