Investee Company – 4th Contact
Investee Company Business Type – A software applications developer
Type of Financing – Expansion
Equity Providers – NewMedia SPARK plc
Equity Leader (Individual) – Richard Hall of NewMedia SPARK plc
Debt Providers – N/A
Debt Type – N/A
Debt Leader (Individual) – N/A
Equity Amount – £1 million
Total Deal Value – £1 million
Other Advisors – Martineau Johnson
Comments – 4th Contact, a developer of software applications for the administration and communication of employee benefits, has received a £1 million investment from technology investor NewMedia SPARK.
Founded in 2000, 4th Contact has developed a leading software package for the management and communication of employee benefit programmes. Hosted remotely on 4th Contact servers, employers and employees are provided with real-time information on their employee benefits package. Working Wealth, which was 4th Contact’s first product, has become the fastest selling on-line employee benefits package in the UK.
The investment from NewMedia SPARK will be used to consolidate the company’s leading position in a market expected to be worth £220 million this year, growing to £380 million by 2003. The financing will also be used to expand the team and raise the profile of the company.
Andrew Carruthers, COO at NewMedia SPARK said: “We are pleased to have invested in 4th Contact at this early stage. We were impressed by the strength and experience of the management team and the increasing market demand for benefits applications. In addition, there are clear synergies between 4th Contact and the other financial services businesses within the SPARK portfolio.”