Endless swoops for European IT company
ENDLESS has bought a £70m-turnover European IT company as it continues to shift its transformational investment strategy onto profitable companies.
The Leeds private equity house has increasingly focused on acquiring and growing profitable businesses and the purchase of MTI Europe from US-based private equity fund Garnett and Helfrich Capital fits in with this approach.
Ed Ransome, the investment director at Endless who led the transaction, said: “Our investment in MTI is a clear indicator that Endless has a strong appetite to invest in profitable businesses which operate across Europe.”
The terms of the deal have not been disclosed.
MTI Europe, which is based in Godalming, Surrey, provides IT storage infrastructure and security solutions from its bases in the UK, France and Germany.
Endless plan to support the existing management team’s ambitions to grow the company by drawing on its own experiences of buy and build, and of transforming other companies in the IT sector.
Mr Ransome added: “Under the leadership of Keith [Clark, chief executive] and his team, MTI has generated strong profits for many years. We will draw upon our experience as a transformational investor, and from owning similar companies in the past, to support him and his team in taking the business to a new era of growth through both organic means and from pursuing add-ons.”
This is Endless’s eighth investment from its £525m Fund IV and the transaction rapidly follows what has been a busy end to 2016 after the exits of Trustmarque, Liberata, Chaucer Foods and West Cornwall Pasty Company.
Mr Ransome said: “Whilst Brexit has brought uncertainty to investors and owners of UK companies, we continue to pursue overlooked assets which possess underlying, latent value. We believe there will be significant opportunities for us to invest further in such businesses in 2017.”
The Endless deal team was led by Ed Ransome, Francesco Santinon and David Isaacs. Endless was advised by Robin Johnson, Jonathan Pollard and Simon Winterburn from Eversheds and Lee Jefferson and Nuala Higgins from BDO.
Garnett and Helfrich was advised by John Singh from DAC Beachcroft, Spectrum Corporate Finance, and Cooley.