Two entrepreneurs from North West England have made a significant move in the IT managed services sector by acquiring Novem, a South Manchester-based managed services provider.
This acquisition marks the second step in their strategic buy-and-build plan, which is supported by private credit provider TDC and their partnership with Independence Capital.
Strategic Buy-and-Build Plan
Alex Heslip and Chris Earle, previously of Manchester-based Verastar, are driving this ambitious initiative. They exited Verastar in 2021 and instantly embarked on creating their own operation. Their approach involves acquiring existing businesses to build a robust IT services platform. The support from TDC, which provided a senior credit facility and equity co-investment through its Impact Fund, has been instrumental.
Second Acquisition
Heslip expressed his excitement by saying, “The acquisition of Novem is an exciting next step for our group. It is a highly prized asset with key additional service capabilities to augment our own.” Earle echoed these sentiments, highlighting the strategic importance of Novem for their ongoing growth plans.
Backed by Strong Partnerships
Jon Petty, investment director at TDC, also expressed his support, saying, “Our Impact Fund is dedicated to backing Northern businesses, and this is a great example of how we can help support ambition in the region.” This backing underscores the commitment to regional job creation and economic development.
Future Growth and Strategy
The investment from TDC is pivotal. It not only supports current operations but also provides the financial muscle needed for future acquisitions. This aligns with their goal to lead as experts in the needs of SME customers.
Enhanced Leadership Team
Watson noted, “We saw growth partners with a pedigree and plan who could enable significant growth. For that reason, myself and Mike are thrilled to be remaining with the business, with enlarged roles and shareholdings in the group.”
Advisors and Legal Support
For the sell-side, Myerson and Insight Business handled the legal and financial aspects. TDC’s legal matters were managed by Addleshaw Goddard. This comprehensive advisory support was crucial for the successful completion of the acquisition.
Commitment to Regional Growth
This acquisition is not just about expanding business capabilities. It reflects a strong commitment to the North West and regional growth. The focus on enhancing job creation opportunities underscores the broader impact of this business strategy.
The acquisition of Novem marks a significant step forward for Alex Heslip and Chris Earle in building a robust IT managed services platform.
With strong backing from TDC and partnerships with entities like Independence Capital, their strategy is set to drive significant growth and innovation in the sector.