Metronet swoops for hosting company in £47.5m deal
MANCHESTER-based Metronet (UK), the UK’s fastest growing network services provider, backed by mid-market private equity firm Livingbridge, has announced its acquisition of M247, an internet infrastructure and hosting company, for £47.5m.
Metronet (UK) currently employs 150 people across two sites in Manchester and works with more than 2,500 business including Intu, Sofology and ao.com, delivering turnover of £21.5m in the financial year to 2016.
Following the acquisition of Manchester-headquartered M247, Metronet (UK) will be able to offer a combined portfolio of connectivity and content services including wireless network services, datacentres and managed hosting solutions across the UK and Europe.
The combined business will have three datacentres, more than 200 staff and EBITDA in excess of £12m.
Established in 2003, Metronet (UK) operates the most advanced hybrid ISP network in the UK and, by combining a unique offering of wireless and wired technology, is able to offer connectivity solutions to corporates and SMEs across the Midlands and the North of England that are typically implemented five times quicker than traditional fibre and copper based services.
M247 was founded in 2000 by school friends Jonathan Buckle and Chris Byrd, initially as a web hosting services business before David Buckle, Jonathan Buckle’s father, decided to co-invest in the business to purchase a web hosting company named Open Hosting. Open Hosting was then incorporated into Jonathan Buckle and Chris Byrd’s existing business before being rebranded as M247 in 2003.
Today the business provides a wide range of solutions including web hosting, network and data security and 24/365 technical support. The firm operates from Manchester, UK and Bucharest, Romania with clients including On the Beach and Warburtons.
Livingbridge invested in Metronet (UK) in June 2014 as part of a £45m secondary buyout of the firm.
TLT including corporate partners Stephen Devlin and Ian Roberts and corporate legal director Elizabeth Delaney advised the management team at M247.
Signia Corporate Finance provided corporate finance advisory services to the management team.
Devlin said: “We were all delighted to have assisted the shareholders with this transaction and wish on-going management every success in the future as part of the Metronet (UK) group.”
David Buckle, managing director at M247, said: “We have known the Metronet (UK) team for some time and feel they are a perfect fit for our business. They are the ideal home for M247 and we are extremely excited about what the future holds for our combined businesses.”
Stuart Lees, co-founder of Signia Corporate Finance said: “M247 has grown very rapidly from its formation in 2000 and today provides a wide range of services including managed and dedicated hosting, data security and high level IT consulting services. I am sure the enlarged group will continue to expand very successfully.”
A team at Deloitte comprising Jodi Birkett, Ian Pickup and Isaac Asamoah provided financial due diligence, while a Deloitte tax team of David O’Leary and Sophie Walker provided tax due diligence.
