MXC Capital takes slice of big data firm Sagacity

Channel investment firm ploughs £4.8m into Sagacity

Serial channel investment house MXC Capital has taken a stake in big data firm Sagacity for an initial investment of £4.8m.

Sagacity, which has customers in the financial services, telecoms and energy sectors, provides big data analytics using an Oracle-based software platform. The firm has "core service offerings in the areas of data quality, revenue assurance and customer value management and analytics", according to a company statement.

Peter Rigg, MXC chairman, said the move will allow MXC to push Sagacity's technology to a larger market.

"The team at Sagacity has developed world-class software that they are already providing to a blue-chip client base," he said. "We believe this technology has very significant potential and we are excited by the opportunity to take this product to a wider market."

With the deal, MXC is taking an initial 19 per cent in Sagacity for an investment of £4.8m, using its cash resources. MXC then has the option to invest a further £1m, and has also been granted the chance to buy another 7.5 per cent of Sagacity's shares.

MXC said the investment will complement the firm's existing IP-rich software providers, such as Castleton and 365Agile.

For its financial year ending 31 October 2014, Sagacity's EBITDA was £1.3m on sales of £4.8m, and the company is anticipating revenues of more than £7m this year.

In May, MXC raised £12m through share placing, which it said it was going to use to "invest in a significant pipeline of identified opportunities".