Point74

We’re pleased to have secured an ARR financing package to support food manufacturing software, Point74, with its acquisition of compliance platform, QUOR.

Founded in 2007, Point74 is the UK’s leading supplier of food manufacturing software. It works with food manufacturers and retailers, including Waitrose and Morrisons, helping them track their food products from production through to use and manage their operations more efficiently. The business is backed by private equity firm, FPE Capital, which specialises in supporting businesses in the software, data and services sector.

Our Debt Advisory team was appointed by FPE to help secure growth financing to enable Point74 to acquire QUOR, a digital compliance platform that helps businesses make their operations paperless.

We worked closely with FPE to prepare the lender materials and test the market appetite. We then led on negotiations with lenders before securing an ARR financing facility that enabled a quick acquisition process for Point74, while also providing the business with the flexibility to make further investments in its operations following this transaction.

This deal brings together Point74’s product lifecycle and recipe management capabilities with QUOR’s expertise in supplier compliance, specifications and paperless factory quality processes. This will support Point74’s efforts to fully digitise end-to-end processes for the food manufacturers and retailers that it works with.

Tom Cox, Debt Advisory Partner at FRP Corporate Finance, said: “Whilst software deals have come under greater scrutiny in recent months, the thesis for mission critical, vertical software remains robust and well-supported by the credit market. We are delighted to have supported the Point74 and FPE teams in securing this acquisition financing, which sees the collective businesses deepen their level of integration with F&B customers.

Harriet Hunt, Investment Director at FPE, said: “Having worked with FRP’s Corporate Finance team before, we knew they had a great understanding of the software sector and they certainly didn’t disappoint. Their support throughout this process was invaluable and enabled us to secure a competitive financing package for Point74 that supports both this acquisition and future organic investment.”

Rob Sinclair, CEO of Point74, added: “Point74 is the number one food manufacturing software partner for food manufacturers in the UK, and our acquisition of QUOR represents a significant step forward in our continued growth and ambition.

“We know how important it is for our customers to have insight into master data and effective management of processes and products. By strengthening our offering even more, we’re creating a UK-first solution which meets the challenges of managing products and factories head on.

“From chefs and NPD teams to technical and finance teams, we’re proud to have a platform which supports the food and drink manufacturing sector in delivering innovation and best practice.”