Business continues on growth trajectory following 2016 MBO
The owners of leading Hull-based IT services company Intrasource have completed an equity buy-out following an ‘impressive period of growth’ for the business, which now employs more than a dozen people and boasts a turnover of £1.4m per year.
The move sees Operations Director David Collings and Technical Director Matthew Nunns take full control of the business as they buy-out shares owned by UKSE which originally invested £150k in the business in 2016, and which was used to facilitate a management buy-out.
The MBO, which would not have been possible without the UKSE investment, secured the company’s ongoing presence in the region, while this latest deal enables the duo to acquire 100% of the shares in the business.
Established in 2000 and specialising in IT support in Hull and across the UK for clients ranging from local coffee shops to national corporations, Intrasource has continued to perform well throughout the pandemic, with increased demand from businesses looking to improve their IT infrastructures to allow for remote working and online sales.
Commenting on the equity buy-out deal Operations Director David said the business was now ‘well placed’ to further capitalise on market growth opportunities, and to press ahead with recruitment plans to fill a number of technical and support roles in the coming months.
He went on to say that thanks to the structure of the 2016 equity investment from UKSE – an organisation which focusses on helping businesses in former steel areas with investments, loans and premises – the management team had now secured a 100% shareholding without incurring costs or penalties.
David said: “We are extremely grateful for the success and growth we have experienced over the past year, and to have been in a position to help our customers – new and existing – to gear up their IT infrastructure in order to tackle the challenges presented by the pandemic head on.”
Support to facilitate remote working – including Microsoft upgrades and transferring businesses onto Cloud-based systems – saw Intrasource perform particularly well during the first half of 2020, while demand from companies looking to improve their cyber security continues to drive sales.
Commenting on the equity buy out deal David added: “We’re extremely grateful to Keith and the UKSE team for the support we have received over the years.
“The initial investment helped to facilitate an MBO which meant we were able to secure the company’s future here in Hull.
“Furthermore, exit discussions were fair and straight forward. No penalties.
“We believe we are a stronger and more valuable company for having worked with UKSE, and we remain committed to our original vision of continuing to grow, and to create further job opportunities in the local area.”
Matt Stewart, Investment Manager at UKSE, said: “Working with Intrasource has been a pleasure. The continued success of the business is testament to the hard work and commitment that David and Matthew have shown over the past five years, and we wish them the best of luck with their future growth ambitions.
“As ever we are delighted to have positively contributed to a business which is creating job opportunities and to have helped David and Matthew own their own business. We look forward to seeing them continue to grow. As with all of the returns we make from our investments we will seek to invest this money in other local companies.”
UKSE provides loan and equity finance of up to £1m to existing companies which are growing, particularly those creating jobs.