A pair of entrepreneurs have continued to develop and expand a leading IT and managed services platform following the acquisition of a South Manchester-based managed services provider.
Acquired with the support of a private credit provider, the entrepreneurs aim to fuel their buy-and-build strategy by partnering with a private equity market disruptor based in Greater Manchester.
Initial Acquisition
After exiting their previous venture in 2021, Alex Heslip and Chris Earle embarked on a buy-and-build strategy. Their first acquisition was RISC IT in 2023, a North Wales-based cloud services provider, marking the beginning of their ambitious growth plans.
Second Acquisition: Novem
With the support of TDC, which provided a senior credit facility and an equity co-investment, the acquisition was made possible. The investment is expected to encourage regional job creation opportunities.
The funding enables the group to pursue further acquisitions in the managed service sector across the UK.
Leadership and Growth
The leadership team has been strengthened with the addition of Rhys Watson and Mike Ryan, who bring valuable expertise and become investors in the group.
Watson expressed excitement, saying, “This is an exciting new chapter for Novem, and we are proud to share this with the market as well as our staff and customers.”
Earle, the group CEO, commented, “The acquisition of Novem is an exciting next step for our group as we continue to grow the platform. It is a highly prized asset with key additional service capabilities and strong organic growth potential.”
Future Plans
The group plans to continue its buy-and-build strategy with complementary acquisitions. This approach is designed to expand their managed services platform across the UK.
The investment from TDC will play a crucial role in supporting these plans, providing further follow-on capital in the future.
Community and Regional Impact
The acquisition and growth plans are expected to enhance regional job creation opportunities, reaffirming the group’s commitment to the North West.
The Impact Fund from TDC is dedicated to backing businesses in the North, with the aim of supporting ambitions within the region.
Jon Petty, investment director at TDC, stated, “IT services is a sector we know well, and we are pleased to back Alex and the team to help them achieve their vision.”
Advisors Involved
Several advisors played key roles in the acquisition. Hill Dickinson provided legal support, while Cortus Advisory conducted due diligence.
Myerson handled the sell-side legal aspects, and Insight Business managed financials. Addleshaw Goddard offered legal assistance to the funder.
Market Position
The group’s strategy revolves around becoming leaders in the SME customer segment, leveraging the acquired expertise and capabilities to solidify their market position.
In conclusion, the entrepreneurs’ strategic acquisitions have positioned them for continued growth.
With strong backing and a clear vision, they are poised to become leaders in the SME managed services sector.