MBO completed at IT services company
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The owners of Hull-based IT services company Intrasource have completed an equity buy-out of the business, which now employs more than a dozen people and boasts a turnover of £1.4m per year.
It sees operations director David Collings and technical director Matthew Nunns take full control of the business as they buy-out shares owned by UKSE which originally invested £150,000 in the business in 2016, and which was used to facilitate a management buy-out.
The MBO, made possible by the UKSE investment, has secured the company’s ongoing presence in the region.
Established in 2000 and specialising in IT support in Hull and across the UK for clients ranging from local coffee shops to national corporations, Intrasource has continued to perform well throughout the pandemic.
It has benefited from increased demand from businesses looking to improve their IT infrastructures to allow for remote working and online sales.
Collings said the business was now “well placed” to further capitalise on market growth opportunities, and to press ahead with recruitment plans to fill a number of technical and support roles in the coming months.
He said thanks to the structure of the 2016 equity investment from UKSE, the management team has secured a 100% shareholding without incurring costs or penalties.
He added: “We are extremely grateful for the success and growth we have experienced over the past year, and to have been in a position to help our customers – new and existing – to gear up their IT infrastructure to tackle the challenges presented by the pandemic head on.”
Support to facilitate remote working – including Microsoft upgrades and transferring businesses onto Cloud-based systems – saw Intrasource perform particularly well during the first half of 2020, while demand from companies looking to improve their cyber security continues to drive sales.
Matt Stewart, investment manager at UKSE, which focuses on helping businesses in former steel areas with investments, loans and premises, said: “Working with Intrasource has been a pleasure.
“The continued success of the business is testament to the hard work and commitment that David and Matthew have shown over the past five years, and we wish them the best of luck with their future growth ambitions.
“As ever we are delighted to have positively contributed to a business which is creating job opportunities and to have helped David and Matthew own their own business. We look forward to seeing them continue to grow.”