Palatine sells interest in IT network provider for £37m
IT network provider Electranet, which has a base in Warrington, has been sold by Manchester private equity firm Palatine to Capita for £37m.
Electranet is one of the UK’s few commercial sites approved to hold government protectively marked information, allowing it to support secure government projects.
The company reported a pro forma operating profit of £2.7m on a turnover of £15.1m in its last financial year ending 28 February 2015 and is forecasting a profit of £5.1m on revenue of £26.4m in its current financial year. The business will join Capita’s IT Enterprise Services division.
Electranet supports high profile government and private sector customers that require secure and effective networking and communication solutions.
The company handles highly secure data and is approved to sponsor its own workforce through national security vetting processes, such as the Counter-Terrorist Check and Developed Vetting.
Capita chief executive Andy Parker said: “The acquisition of Electranet will enable an evolution of our secure IT infrastructure capability. This business will allow Capita to build on its existing expertise and deliver highly secure services to both new and existing customers.
“We will integrate Electranet’s skills and experience into Capita’s services in a number of key sectors – driving forward organic growth and expanding our capability to build innovative new IT enabled solutions.”
Electranet chief executive Andy Richards said: “This acquisition marks the next natural stage of our growth as an organisation. Capita can provide access to investment and customers that will allow us to build on our great success to date. As part of Capita, our team will be able to grow and develop as we work to deliver secure and innovative systems for our customers.”
DWF’s corporate team, including Tom Maxwell and Gemma Gallagher with support from tax partner Ronnie Brown, advised Capita on the deal.
Palatine Private Equity invested in the company in 2008 as part of a management buyout. This acquisition will see the private equity house exit the business.
A team from Gateley, led by Rebecca Grisewood, corporate partner, assisted by Kate Richards, advised Palatine on the deal.
