Telecoms provider secures £16m for acquisitive growth plans
A telecoms provider for businesses, health authorities and retailers has secured a funding package worth up to £16m to support a key business acquisition and deliver improved connectivity services to more than 800,000 organisations across the UK.
Birmingham-headquartered Convergence Group obtained an initial £8m revolving credit facility from NatWest to expand its offering of faster and more reliable connectivity services for its business users.
The funding has enabled the company’s recent acquisition of network specialist LAN3.
As part of the deal with NatWest, Convergence Group will have access to an additional £8m to support its ‘buy and build’ strategy, which will support continued innovation and future acquisitions.
Founded in 2004, Convergence Group works with major organisations across the UK in both the public and private sector, delivering critical LAN & WAN services to 800,000 business users through its own proprietary network infrastructure.
Danny Masters, managing director of Convergence Group, said: “In the current climate, our reliance on connectivity is critical, especially with so many businesses working remotely. With this comes a new set of corporate work challenges, as businesses look for secure and efficient connectivity services to support their hybrid working models.
“At Convergence Group, we believe that all connections should be cost-effective, easily attainable and simple to use, and we are determined to change the face of telecoms by delivering on these requirements so we can offer the best for our customers. The support of NatWest will go a long way towards helping us deliver on these aims, allowing us to continue to disrupt the market with our forward-thinking methods and enabling our customers to decide what they need for their business.”
Duncan Todd, relationship director, West Midlands Corporate at NatWest, said: “I’m delighted that NatWest’s TMT sector proposition has yet again been able to support a successful, local business to scale up its offering. Working with the team at Convergence Group to enable this funding support for such an important business deal has been fantastic.
“I’m confident they will continue to build upon their highly sought-after services to help businesses with their WAN & LAN connectivity needs and deliver an essential service to businesses up and down the country.”
