NorthEdge has sold energy technology and data services business Correla to Esyasoft Technologies UK, generating a 4.7x gross multiple on invested capital.
According to NorthEdge, the transaction generated a 4.7x gross multiple on invested capital, marking the first realisation from NorthEdge Fund III following its initial investment in 2021.
NorthEdge did not disclose net returns to limited partners, the enterprise value or growth in earnings before interest, tax, depreciation and amortisation.
However, the firm did state that Correla built a software-as-a-service division, adopted artificial intelligence technology and acquired CloudKB in 2022 to diversify its original service-based business model.
NorthEdge said customer satisfaction had improved and recurring revenue had grown.
The exit process was led by NorthEdge chief investment officer Jon Pickering and investment manager Serafina Di Felice, alongside Correla chief executive Sian Jones and chief financial officer Sarah Tromans.
Houlihan Lokey provided corporate finance advice to NorthEdge and Correla, with legal advice from DWF. Clyde and Co and Andersen advised Esyasoft, while Shawbrook provided structured financing for the deal.
Pickering said: “Since meeting Sian in 2021, we have been hugely impressed by the vision and discipline she and her team have brought to building Correla from a standing start into one of the UK’s leading energy technology firms – a regional business creating a meaningful national impact on the UK’s decarbonisation journey.
“Throughout our ownership the business has significantly grown its team, customer base and profitability, and we look forward to watching it continue to grow with the support of Esyasoft.”
Jones added: “When we were seeking private equity investment five years ago, I chose to work with NorthEdge for their values and reputation, their credentials in the energy and technology sectors, their local proximity, and their track record of building better businesses through their proactive and supportive approach to value creation. Through working with Jon and the wider team, our expectations of the partnership were exceeded.
“NorthEdge enabled us to build a high-quality team, invest significantly in our technology and commercial approach, and complete our first acquisition. The business is now well placed for the next phase of its journey, alongside its new global technology partner, Esyasoft.”
