Dains advises Astec shareholders on the sale to Novotek

Deal Summary

Dains Corporate Finance is pleased to announce that it has recently advised shareholders Andy Tripp, Mags Tripp and Chris Barlow on the sale of Astec IT Solutions Limited (“Astec”) to Novotek Limited.

Astec uses best in class industrial software to deliver smart manufacturing solutions into manufacturing and other industrial sectors. Astec works alongside their clients’ engineering and IT departments to ensure all monitoring, control, visualisation and analytical systems make best use of existing infrastructure investments, whilst providing solutions which can be used for multiple years.

Novotek has been a key software delivery partner of Astec since the 2000s. This close relationship has continued to strengthen over the years, resulting in the acquisition of Astec which will allow them to deliver more value for customers under a single brand.

The service we provided

We advised the shareholders on the merits and structure of the deal and the overall valuation of the company. The deal structure that we negotiated ensured that the value was maximised through a combination of an attractive completion payment and a well structured earn-out.

We supported the sellers throughout the financial due diligence and legal process and worked with the parties to ensure that where points of difference emerged throughout the transaction these were addressed in an efficient manner. This ultimately allowed for a smooth completion process with minimal disruption to the business.

What our client said

Andy Tripp, Managing Director of Astec said: “Roy is a very likeable and knowledgeable individual. He has a great deal of experience and was able to help us act and transact with confidence as we navigated through what, to me, was a new and complex process. He was a pleasure to work with and I was pleased he was able to help us to complete this deal following his provision of advice on previous M&A opportunities over the years.

Having used Dains previously to help with some reasonably complex corporate structure and accountancy challenges, it was also great to know we had the broad spectrum of Dains’ professionals at hand in case we needed to draw on additional subject matter expertise.

The successful conclusion of the strategic sale of our long-standing and highly reputable business speaks volumes about the team we employed to help us achieve our goal.”

What we said

Roy Farmer, Corporate Finance Partner at Dains said: “I am delighted with the result we have achieved for Andy, Mags and Chris and wish them all the best on their future journey. Astec and Novotek have enjoyed a long-term trading partnership and I am certain that the combined business model will allow them to go from strength to strength.”

Sell-side advisers on the transaction

Corporate finance advice was provided to the shareholders by Roy Farmer and Constance Host of Dains Corporate Finance and tax advice was provided by Adam Longmore and Sam Palmer of Dains Accountants. Legal advice was provided by Neil Jones and Jamie Gill of Ansons Solicitors.