A Scottish company which has developed software systems to help firms manage the risks of operating in hazardous industries such as oil and gas has won £6 million in investment from the Business Growth Fund (BGF).
The bank-financed fund has provided backing to help Aberdeen-based Petrotechnics capitalise on booming activity in energy markets around the world.
The fund believes there is potential for Petrotechnics to achieve rapid growth at a time when firms want to maximise efficiency while minimising the risk of accidents.
It said some 80% of North Sea and 40% of Gulf of Mexico assets already use Petrotechnics' software to help manage their frontline operations safely and efficiently.
The deal is the fifth completed in Scotland by the Business Growth Fund and takes its total investment in the country to over £30m.
Simon Munro, regional director for Scotland, said more deals are in the pipeline.
Mr Munro said: "I would expect further oil and gas related investments during 2013."
Local business leaders in Aberden said the investment in Petrotechnics provided a notable vote of confidence in technology developed in the area.
"The substantial amount of funding is a rousing endorsement of the innovative and technological achievements in the north-east business sector," said Liam Smyth, membership director at Aberdeen & Grampian Chamber of Commerce.
Founded by chief executive Phil Murray in 1990, Petrotechnics has developed systems which it says allows users in industries such as oil and gas and chemicals to predict and manage the risks involved in operating complex production systems.
The fund said Petrotechnics' new Proscient software can help organisations maintain the integrity of their assets, the safety of their workforce and the sustainable achievement of their production targets.
The company has built up a blue chip client base which includes BP, Shell and National Grid.
With offices in Houston, Saudi Arabia and Singapore, Petrotechnics has developed a global presence. Its software is used across 385 sites on six continents.
Turnover has averaged £10m to £15m over the past five years.
Mike Sibson, an investment director at BGF, said Mr Murray and members of the team he has built are genuine experts in their field. Mr Murray spent 10 years at BP in technical, operational and managerial roles before founding Petrotechnics.
The company's large installed base and products make an exciting combination, said Mr Sibson, who is joining the Petrotechnics Board.
Established following complaints that lenders were failing to support small and medium sized enterprises, the £2.5bn BGF opened for business in April 2011.
It is supported by five banks, including Royal Bank of Scotland and Lloyds Banking Group.
The fund clinched its first deal in Scotland in March last year, when it provided £7.8m backing for STATS Group, an Aberdeenshire-based pipeline specialist.
The BGF believes the decision of big private equity firms such as 3i to focus on giant deals has left a gap in the market for firms needing £2m to £10m, even in the much fancied oil and gas sector. By offering funding on a long-term basis and only taking minority shareholdings, the fund believes it can help realise the potential of firms that may be reluctant to give up equity on any other basis.
In addition to three oil and gas firms the fund's portfolio in Scotland includes AFG Media, which sells Morphsuits for revellers and the M Squared Lasers business.
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