Fixtaia invests £10 million in Nash Squared, a global tech solutions firm

LONDON, UK: Fixtaia Limited, a private investment company, has announced that it has completed an investment of £10 million in Nash Squared group, a leading global provider of technology solutions and talent acquisition, as part of a refinancing by Nash Squared.

The investment was made through the subscription of £10 million fixed rate unsecured 15% series A loan notes and payment in kind (PIK) notes issued by The Power of Talent Midco Limited, a special purpose company that ultimately owns the operating companies in the Nash Squared group.

The notes are due to be redeemed no later than 9 February 2027, with interest accruing daily and compounding monthly. Interest can be paid in cash or through the issue of further notes at the election of Midco. The notes also benefit from a fixed £1.5m redemption premium. If the notes are redeemed within the first year then 12 months’ interest is repayable upon redemption.

Nash Squared, established in 1998, is a global leader in technology solutions and talent acquisition, serving its blue chip customer base both onshore and from delivery centres in Vietnam, India and Central America. Nash Squared is the largest foreign employer of software developers in Vietnam, and has approximately 3,000 employees worldwide. Nash Squared is currently 85.7% owned by funds discretionally managed by DBAY Advisors Limited, which acquired its interest via an offer for the entire issued and to be issued share capital of Harvey Nash Group plc in 2018, following which DBAY reregistered the company as private.

For the year ending 31 January 2023, Nash Squared reported EBITDA (pre-exceptionals) of £34.4 million, a 17% increase on the prior year, on revenues of £748.4 million. Nash Squared audited accounts for the year to 31 January 2023 show group net assets of £106.2 million.

The investment is being treated as a related party transaction pursuant to AIM Rule 13, as Nash Squared is an associate of DBAY, which is LDG’s investment manager and 27.2% shareholder. The independent directors of LDG, having consulted with Strand Hanson as the company’s nominated adviser, consider the terms of the investment to be fair and reasonable insofar as the shareholders are concerned.

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