Tech workforce re-entry training firm acquired at 2.8x revenue
Thu, 09 Feb 2023 | BUSINESS SALE
Tech Returners, a firm that provides training and placing for mid to senior-level professionals looking to re-enter the technology sector after a career break, has been acquired by tech training firm Northcoders. The cash and shares deal values Tech Returners at £1.5 million.
The price represents close to a 2.8x multiple of Tech Returners’ revenue of £565,000 for the year ending November 30 2021, on which it generated pre-tax profits of £68,000. At that time, the firm’s net assets were valued at around £7,000.
Tech Returners was founded in Manchester in 2016 by Beckie Taylor and James Heggs. The company up-skills corporate-sponsored individuals and corporate teams for large firms across a range of sectors, with programmes focused on subjects ranging from software engineering to digital leadership and confidence.
Post-acquisition, Northcoders says it hopes to benefit from entering a new service area and from the support the acquisition will provide as it looks to build a presence in key locations, including London. The deal will create a 120-person business and add to Northcoders’ existing bases in Manchester, Newcastle, Leeds and Birmingham.
Northcoders expects Tech Returners to be fully integrated into its business by the second quarter of 2023. Tech Returners will continue to operate under its existing brand following the takeover, while founders Beckie Taylor and James Heggs will join Northcoders’ senior leadership team.
Northcoders CEO Chris Hill said: “Northcoders and Tech Returners share many common goals and values so this deal is an exciting step in our joint evolutions.”
“As a result of this deal we will become the only organisation that allows businesses access to the most diverse and comprehensive pool of top tech experts across all experience levels, and that’s something that will stand us apart from the competition.”
Tech Returners co-founder Beckie Taylor added: “Our shared objectives are to ultimately drive talent retention in businesses, to attract the best and most passionate minds in the tech industry and to help build diverse teams. By combining our experiences and skillsets, I believe we will create something really special that will have a lasting impact.”
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