Inflexion Private Equity

On 4 July 2011, Canaccord Genuity's client Inflexion Private Equity ("Inflexion") announced the sale of Red Commerce Limited ("Red"), the global IT resourcing specialist, in a secondary buyout to Dunedin for a headline valuation of £44mlion.

Occupying an attractive position within the global enterprise resource planning ("ERP") software systems market, Red supplies SAP experts to multi-national corporations on mid-term consulting contracts, permanent placements and through its hybrid consultancy business RedSolutions. SAP experts supplied by Red fulfil a wide variety of roles, ranging from systems developers to programme directors, and are placed either individually or in groups on a contract or permanent basis. Under Inflexion's ownership, the business pursued an international expansion strategy, opening offices in Cologne, Munich, Stockholm and Zurich, invested heavily in its business development function and established the RedSolution proposition. Going forward Red intends to further expand its international office network in the US and BRIC nations.

Canaccord Genuity acted as financial advisor to Inflexion and its management team on the exit, yielding a multiple of over 4.4x for Inflexion's investors (34% IRR). The transaction builds on Canaccord Genuity's strong record in the European technology and business services sectors.