What drove transatlantic tech merger

The personalities behind Fourteen IP and Clearly IP and the part Beech Tree played

Dear Rainmakers,

There’s supposed to be some secret alchemy to what private equity investors do when they acquire a business. It usually takes time before the next significant event, unless it’s a ‘platform deal’ where they buy it with the intention of adding a few more businesses to it in order to create value.

Here’s what went on with Beech Tree’s investment in Wigan-based Fourteen IP, which merged with an American counterpart this week.

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Beech Tree’s role in transatlantic tech merger

In the absence of platform deals for private equity investors, the trick has been to sweat the assets they have, or seek strategic growth in partnerships and mergers, often international.

Beech Tree Private Equity have only owned Wigan-based tech business Fourteen IP since April, but it’s been fascinating to see the building blocks they’ve put in place in a few months to get the business ready for today’s merger with an American counterpart in a deal backed by its investor Beech Tree Private Equity.