Potentia’s understood to have tipped in about $10 million in primary capital to fund growth and finalize rex’s build out of a rental/tenancy functionality that would enable clients to operate their agencies on a single platform, and also acquired stakes off some of the company’s early angel investors.
Sources said Potentia liked progress. Rex had made against established incumbents, who tended to offer more dated technology solutions.
Investor sources said Potentia cut the check from its $635 million Potentia Fund II, which closed in June last year. Rex was one of the new fund’s first two investments; the other was a 25 per cent stake in communications software company Soprano Designed, picked up from ASX-listed HT&E Limited and announced to the market on January 3.
The two investments come as Potentia has also been chasing Nitro Software and Tyro Payments, in a deal frenzy that shows it’s keen to put the fresh capital to work.
The technology-focused growth equity firm’s move on rex looks like it’s within the firm’s sweet spot. The acquisition comes only 12 months after Potentia bought into tendering software group EstimateOne, and its fourth investment in the Queensland market following stakes in NewBook, Precision Mining and Commerce Vision.
Potentia was advised by law firm Talbot Sayer, PwC and LEK, while rex had TCA Partners and K&L Gates in its corner.