Mercia Asset Regulatory News (MERC)

RNS 6 December 2024

Mercia Asset Management PLC

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

Netacea receives additional investment

Mercia Asset Management PLC (AIM: MERC), the regionally focused, specialist alternative asset manager with over £1.8billion of assets under management, is pleased to announce a £4.0million follow-on investment into Netacea Group Limited ("Netacea").

The investment will be made across two tranches. Mercia's balance sheet will contribute £3.1million to the investment round in total as part of its direct investment holding, with the remainder coming from its third-party managed funds. Mercia's direct investment is split £2.0million now, with the second tranche of £1.1million expected to be invested during Mercia's next financial year. Following completion of both tranches Mercia will hold a fully diluted 33.6% direct investment in Netacea, with its managed funds holding a further 26.9%.

This new funding will enable Netacea to accelerate its position as a leading defensive AI software provider against bot attacks, targeting mobile, web and API applications. The investment will support its AI strategy, as well as the expansion of its product portfolio and continued growth both domestically and internationally. Netacea already counts major global retailers and telecommunications networks amongst its client base.

Dr Mark Payton, CEO of Mercia Asset Management, said: "We are pleased to continue supporting Netacea's growth trajectory. We have several investments in the cyber security sector, across both our direct investments and managed funds. These portfolio companies are addressing critical challenges across the security spectrum - from bot detection and threat intelligence to digital forensics and supply chain risk management. The sustained interest we are seeing in this sector validates our long-held investment thesis."

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About Mercia Asset Management PLC

Mercia is a specialist alternative asset manager focused on supporting regional SMEs to achieve their growth aspirations. Mercia provides capital across its four asset classes of venture, debt, private equity and proprietary capital: the Group's 'Complete Connected Capital'.

The Group has a strong UK footprint through its 11 regional offices, university partnerships and extensive personal networks, providing it with access to high-quality deal flow.

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