Temasek, a Singaporean investment company which owns a £158bn portfolio, has bought a minority stake in UK supply chain software company BluJay Solutions, valuing the business at $700m (£520m).
US private equity house Francisco Partners, advised by Arma Partners, has held on to a majority stake in BluJay. The firm was considering selling a majority stake, City A.M. understands, but Temasek's offer proved more attractive than other bids.
Francisco has owned the company since 2012, when it was known as Kewill, making its investment period relatively long for a private equity fund. But the entry of Temasek will have provided welcome further capital for expansion.
“Our relationship with Temasek will allow us to invest more aggressively by building on our innovative platform and entering new markets,” said Doug Braun, BluJay's chief executive.
“Our objective is to become the world’s premier supply chain network, moving products around the world with ever greater efficiency.”
The deal is one example of how UK tech companies are drawing increasing interest from buyers. As well as attracting transcontinental money, businesses such as BluJay are scooping investments from less conventional buyers – such a state-backed investment funds, as opposed to the usual private equity or major corporate bidders.
Along with a new financing facility, BluJay now has access to $500m of capital to boost its acquisition spending.
The company, which provides software to retailers, distributors and manufacturers, employs around 1,000 people and serves more than 7,000 customers worldwide.