Refract – the Newcastle-based tech company which is backed by Mercia – has been acquired by the US software firm Allego.
The deal is the fourth exit this year for Mercia’s EIS funds and represents a 1.8x return on Mercia’s original investment, equivalent to a 20% investment rate of return (IRR).
Refract provides sales engagement and conversation analytics that helps sales teams improve conversations and close more deals. Mercia first backed the company in 2016 and made a follow-up investment in 2017. The sale builds on a year-long partnership between the two companies, during which a portion of Refract’s technology was integrated into Allego’s capability.
Ian Wilson, who heads the Newcastle office, led the deal for Mercia. Ian said: “Refract and Allego have been working together for a year and are a perfect fit. It’s great to see Mercia help another company to achieve its growth objectives. The deal is yet another highlight for Mercia’s EIS funds. 2020 has been a challenging year and to have completed four successful exits so far is a real achievement.”