Palatine backs MBO of Kent IT firm

PALATINE Private Equity has taken a majority stake in Kent-based IT services company Selection Services, which it is putting together with Brighton-based hosting and disaster recovery services business, Cloud Data.

Manchester-based Palatine said the combined businesses would have a turnover of £28m and around 360 employees. It added that the firm would have “extensive capabilities in the hosting and cloud computing arena”.

Management teams area also being combined, with Selection Services’ MD and FD Grahame Harrington and Harvey Downer being joined by Anthony Galley as chairman and Glenn Carroll as business development director. The latter pair were responsible for building the Mistral ISP business sold to Hull-based KCOM in 2007.

Palatine has co-invested alongside the management teams of both firms, while Beechbrook Capital Partners has provided debt facilities and Barclays Bank has provided working capital.

This deal represents the ninth investment made from Palatine’s £100m maiden fund which closed in December 2007.

Grant Thornton and Gateley advised Palatine on the deal, while Tenon and CiL carried out due diligence.

Palatine partner Tony Dickin said: “We are delighted to have backed the management buyout of Selection.
 
“We believe the combination of Selection and Cloud Data creates a strong platform from which to build a significant IT services business to take advantage of the trends in the sector. We look forward to working with the team to deliver on these strategic objectives.”