Millgate goes for growth with MBO

SOUTH Yorkshire computer technology firm Millgate Computer Systems has undergone a £1m management buyout (MBO) in a deal funded by The Royal Bank of Scotland (RBS).

As part of the transaction the Rotherham-based firm's managing director, Chris Calvert, has acquired the shareholding of his original business partner, Dave Matthewman who is retiring from the business.

Founded in 1996, Millgate Computer Systems offers a range of services to customers in the UK and Europe including a maintenance and server division, a hardware and software sales division, communications and networks, structured cabling division and website design.

The business has grown considerably over the past eight years and is currently looking to move to bigger premises. It employs 30 people and has a turnover of £9m which is increasing year-on-year.

Mr Calvert said: “This deal provides a great opportunity to continue to grow the business further throughout the UK and Europe and will enable us to achieve our ambitions. In order to maintain the growth levels the company has recently experienced, we needed to ensure we had a supportive bank that understood the company and its needs.”

Andrew Stobbart led an RBS Group team which included colleagues from the group's Lombard and Invoice Finance divisions. Legal advice was provided to Mr Calvert by Wake Smith. HLW provided legal advice to RBS.

Mr Stobbart, director, business development, commercial banking at RBS, said: “Millgate Computer Systems is a well run business and has an excellent brand name within the technology market. Chris has considerable expertise in this sector and knows the company inside out having been an original founding partner and I am sure he will continue to grow the business to new levels.”