Better Capital exits IT services firm

BETTER Capital, the investment company run by venture capitalist Jon Moulton, has sold Manchester-based IT company Calyx Managed Services for £9m.

Based at the Towers Business Park, Didsbury, CMS had revenues of £24m in the year to December 2013 and has around 200 employees.

It has been acquired by MXC Capital, a specialist investment bank focused on the technology sector.

The transaction does not include Calyx’s former sister company Stockport-based m-hance, which is being retained by Better Capital.

In a statement Better Capital said: “In considering the position of the Calyx Group and the likely opportunities for value creation from the two constituent parts, a decision was made to retain m-hance and pursue a sale of the CMS business.  

“CMS was considered sub-scale to other operators in the sector and it was not felt appropriate to apply further capital in seeking acquisitions to increase its critical mass.   

Following a competitive auction process involving a number of interested parties, CMS was sold for an enterprise value of £9m which, after deducting sale costs and management incentives, results in £7.8mn being returned to Fund I.

“The directors wish the CMS team every success in the future under their new ownership.”

Better Capital was advised by Manchester-based corporate finance house Rickitt Mitchell and a team from law firm Eversheds.