Mercia Asset Regulatory News (MERC)

Mercia Asset Management PLC

("Mercia", the "Group" or the "Company")

Mercia announces a further direct investment into Intechnica Group

Mercia Asset Management PLC (AIM: MERC), the proactive, regionally focused, specialist asset manager with c.£948million of assets under management, is pleased to announce that its direct investment portfolio company Intechnica Group Limited ("Intechnica Group") has completed an £8.5million funding round to accelerate its growth in both the UK and US markets. Mercia has invested a further £1.2million from its own balance sheet, alongside a £5.0million investment by the Mercia advised/managed Northern VCTs and £2.3million from existing private investors and Rupert Cook, the recently appointed non-executive chairman of Intechnica's cybersecurity business, Netacea.

Following this investment, Mercia holds a 24.4% fully diluted direct equity stake in Intechnica Group, with the Northern VCTs holding a further 10.6% fully diluted equity stake.

Intechnica Group comprises Netacea and the well-established Intechnica consulting business. Netacea is a fast-growing cybersecurity business that detects robotic-based security attacks that target mobile, web and API applications. Intechnica operates consultancy services that provide digital transformation programmes for businesses looking to modernise their technical capability or introduce modern data science capabilities into their businesses. It maintains a client base of high-profile global companies with cross-border operations.

Intechnica Group first became a direct balance sheet investment in 2017 via a £3.8million investment.

Mark Payton, Chief Executive Officer of Mercia, commented: "Netacea is on the front line of the multi-billion-pound cybersecurity threat that faces all organisations today. With the majority of internet traffic made up of malicious bots, Netacea is providing critical security infrastructure to protect the revenues of businesses globally and customer demand is high. By providing the right funding and leveraging our extensive network, Mercia has supported Intechnica Group on a complex journey, helping it to develop and launch its valuable Netacea offering into new markets. It is a great example of Mercia's Complete Connected Capital which has supported Intechnica Group's two founders, Jeremy Gidlow and Andy Still, to help deliver an ambitious growth plan internationally. We look forward to our continued relationship with Jeremy, Andy and now Rupert as the business scales both in the UK and overseas."

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About Mercia Asset Management PLC

Mercia is a proactive, specialist asset manager focused on supporting regional SMEs to achieve their growth aspirations. Mercia provides capital across its four asset classes of venture, private equity, debt and proprietary capital: the Group's 'Complete Connected Capital'. The Group initially nurtures businesses via its third-party funds under management, then over time Mercia can provide further funding to the most promising companies, by deploying direct investment follow-on capital from its own balance sheet. 

The Group has a strong UK footprint through its regional offices, 19 university partnerships and extensive personal networks, providing it with access to high-quality deal flow. Mercia currently has c.£948million of assets under management and, since its IPO in December 2014, has invested c.£116million gross into its direct investment portfolio.

Mercia Asset Management PLC is quoted on AIM with the EPIC "MERC".