Communications firm underlines investor’s growth plans with new acquisition

A Solihull communications business has undergone further expansion in a deal which underlines the growth ambitions of one of its major investors.

Wavenet has acquired Norfolk-based Swains, a leading provider of business communications solutions including telephony, internet, mobile and VoIP (Voice over Internet Protocol). The terms of the deal have not been disclosed.

The deal follows on from Wavenet, which is based at The Green, Shirley, acquiring Talk Internet in March this year.

Wavenet underwent a £35 MBO last year in a deal that saw private equity firm Beech Tree take a majority stake in the business.

Beech Tree, which has a base at Colmore Gate in Birmingham city centre, is now targeting new opportunities both for Wavenet and its other portfolio companies.

The move comes after the firm announced the closure of its second fund, Beech Tree Private Equity Fund II, which has taken funds under management from £40m to £115m.

The firm, which also has an office in Cheshire serving the North West, said the move was a very significant step for the business and had attracted the support of both existing and new blue-chip investors.

The firm invests £10-30m into high growth companies valued at between £10-75m. The business was founded by experienced private equity investors, Andy Marsh and Paul Franks.

In addition to Wavenet (unified communications), its current portfolio companies include RS Connect (telematics), Fluent Money (fin-tech) and Learnlight (ed-tech).

Under its stewardship, Bolton-based online loans broker Fluent Money has also expanded, with the acquisition of Bury-based specialist mortgage and equity release broker, Brytannic Extra Finance.

However, the firm is keen to expand its whole portfolio and to help it achieve its aims has recruited a new operations director, Peter Hosker. He will be focused exclusively on helping the portfolio companies execute their business plans.

The firm said the investment recognised the importance it placed on working alongside its management teams.

Paul Franks, managing partner of Beech Tree Private Equity, said: “We are delighted with our progress since setting up the business in early 2015. We are very proud to have attracted high quality investors to our proposition and taking funds under management to well in excess of £100m.

“The focus we have of finding high-growth opportunities in really exciting sectors resonates well with investors. Having a regional network to help tap into these opportunities is really powerful.”

Fellow managing partner, Mr Marsh added: “We have been really busy in building our portfolio and accelerating the development of our businesses. The recent M&A activity in our portfolio demonstrates our commitment to build up companies into class-leading businesses.

“We have to date invested in four businesses, in every single one of these we have added to the core business with acquisitions. The addition of our operating director, Peter Hosker, will add further dedicated resource to support our portfolio companies through these periods of rapid growth.”