A Newcastle tech company which helps businesses engage and connect their staff is set for more growth after striking a multimillion-pound investment deal with a private equity firm.
Based at Generator Studios in Ouseburn, Oak Engage links staff through its intranet software solution in the form of a mobile app. It works with some of the world’s biggest brands including Aldi, Boohoo, Halfords, NatWest and ScS.
The company has been on a rapid growth journey over the last few years, on the back of several capital injections from Maven Capital Partners, which had ploughed £6.025m in by July 2021, alongside further sums from private investors and regional funding as part of a £7.4m series A funding round.
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Now the firm is set to ramp up the work it does with workers at household names, after being sold to NorthEdge in an undisclosed multimillion-pound deal. The deal provides an exit for Maven, while also serving up a 2.1X return to its investors.
Oak Engage is helmed by seasoned former Silicon Valley executive Will Murray, who has a track record of growing technology businesses. He was a key member of the management team of Turnitin, a US software company which sold to a private equity buyer for $1.75bn.
The firm said this new capital will be used to continue its rapid growth and fund further investment in business capabilities. Its app has been hailed for empowering teams to reach deskless workers, using AI to deliver personalised communications.
Mr Murray, CEO at Oak Engage said: “Oak Engage is entering an exciting phase of accelerated growth and this milestone marks a pivotal step in our journey. The backing we’ve received is an endorsement of our vision and a reflection of the exceptional commitment and talent of our team. I’m proud to lead the business through this next chapter with the support of NorthEdge.
“We are very grateful to Maven Capital Partners for their support in laying the foundations for this transition and we also thank Ian Richards and Northstar Ventures for their backing. As we look ahead, our focus remains firmly on scaling our capabilities - investing in our people, our product, and the experiences we deliver for our customers and their employees.
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“We have already built an award-winning platform that is receiving global recognition and delivering meaningful outcomes that improve the way businesses operate. This investment will allow us to continue this work and be a true disruptor in the industry.
Dan Matkin, director at NorthEdge, said: “We are delighted to be backing Will and the highly ambitious team at Oak Engage to continue the growth of the business following their success over the last few years. The business operates in a fast-growth market that continues to evolve at pace, Oak Engage’s well-invested platform means they are well-placed to capitalise on the increasing demand for employee engagement tools.”
Michael Vassallo, investment partner at Maven, said: “Our partnership with Oak Engage has been both highly productive and rewarding for all involved, which is testimony to the skill and strategic insight of CEO Will Murray and his talented management team. Over the course of the investment period, we have supported the business in executing its go-to-market strategy for its cloud-based SaaS product, built an impressive customer base of major global brands, and accelerated revenue growth.
"From being a business with high potential, we are delighted to see Oak Engage now established as a global player offering a comprehensive, feature-rich solution to businesses looking to foster a stronger company culture.”
Ian Richards, director at Northstar Ventures, said: “It takes a strong but flexible team to build a company, with the tenacity to keep going through all the challenges the journey entails. Those challenges are far more navigable with guidance from experienced investors and Northstar has worked closely with the Oak Engage team to help develop strategy. It has been gratifying to work alongside Oak Engage, see the team bring on board big-brand customers and gain support that can take them onwards to, we’re sure, even greater achievements.”