Humber hospitality tech firm Tevalis receives £11.5m investment from BGF

Software provider Tevalis has secured a multimillion-pound investment from equity investor BGF.

The Hull-based provider of electronic point of sale (EPOS) systems to restaurants, bars and hotels says it had been looking for a backer that could help it scale. Tevalis, which was founded in 2005, is said to have more than £8m of annual sales and 800 customers, with founder James Cook saying he wants to "take the business to the next level" and treble recurring revenues in the next three to five years.

The firm's software platform combines order and pay, kitchen, stock and cash management abilities with business analytics and reporting tools. As well as bars and restaurants it supplies food halls and leisure destinations including brands such as Village Hotels, Colchester Zoo, and Boxpark.

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As part of the deal, Rob Caul has been appointed non-executive chair following an introduction from BGF. Mr Caul founded and scaled HR software firm Kallidus, securing multiple rounds of private equity investment, and is said to bring experience in scaling software businesses.

James Cook, founder and CEO of Tevalis said: “It was important for us to find an investment partner who understood our sector and could take a long-term, patient view. We also wanted an investor who could help us scale and take the business to the next level – in BGF we have that and we are looking forward to leveraging their network over the coming months and years to support our growth."

BGF investor Rob Johnson added: “We’re excited to be investing in a high-quality technology business of scale with an ambitious growth plan. Operating in a fragmented market, James and the team have done an impressive job in establishing the Tevalis brand, with clear opportunities to increase market share, both at home and abroad. We look forward to building on the excellent relationship we’ve built with James through the deal process.”

The deal was led by Rob Johnson and James Baker, investors in BGF’s Yorkshire and North East team. Paul Mann, Jonathan Ross, Josh Lodge and Sarah Hardman of Squire Patton Boggs provided legal advice to BGF while BDO's Nick Millward and Stephen Allender provided tax advice.

Jeremy Sweetnam, Chris Whitehead, Iffy Hussein and Cameron Adamson of PwC provided corporate finance advice to Tevalis, while Gill Pooler and Andy Herring of PwC provided tax advice. Richard Hunt, Carly Gulliver,and Aidan Barry supplied legal advice to Tevalis.