Equiteq, a consulting sector M&A specialist, has advised Certeco, a business technology change consultancy, on its merger with P2 Consulting, a project and programme management consultancy.
The deal is backed by Lonsdale Capital Partners, a private equity firm focused on the lower mid-market. The transaction closed on September 26, 2017.
Certeco is one the UK’s largest business technology change consultancies, providing specialist consultancy services to corporates in industries like banking, insurance, public sector, education and media. Certeco focuses on bringing certainty to business change programmes, helping clients with business restructuring, regulation and digital change.
Equiteq previously worked with P2 Consulting in 2016, advising the shareholders on a management buyout supported by Lonsdale Capital Partners. With Lonsdale’s investment and support, P2 has continued its growth towards realizing its ambition to become the world leader in project and programme management. Certeco approached Equiteq looking for an investment partner to further accelerate growth. Recognising that Certeco and P2 have a highly synergistic service offering and a complementary blue chip client base, it was clear to Equiteq that, together, a combined business would more rapidly accelerate to achieve the strategic objectives of all parties.
Augusto Negrillo, Chief Executive Officer of Certeco, says: “The transaction with P2 comes at just the right time in our growth trajectory. We have actively been seeking an investment partner to achieve our strategic ambitions.”
Doug Elliot, Chief Executive Officer of P2 Consulting and the CEO of the newly formed company, says: “We are very excited about this transaction, as P2’s and Certeco’s services are so complementary. Together, we will be able to provide a much broader range of consultancy services to the market and become a real contender to the big consultancies.”
Ed Groome, Director, who led the Equiteq team, says: “Equiteq has now advised on a number of transactions in this sub-sector of the consulting market. Having worked with P2 and Lonsdale in the past, we were uniquely positioned to advise Certeco on the merger. The two teams are highly complementary in terms of their market offering – combining them into a single, enlarged entity will undoubtedly drive more rapid value creation.”
Regarding Equiteq’s role in the transaction, Adam Ripley, Chairman of Certeco, says: “We’ve been working with Equiteq for some time now and they have expertly helped guide us through the process. With their sector knowledge, they quickly understood our business and what would drive value in a transaction. They already knew P2 and Lonsdale and, when Equiteq introduced them to us, it was apparent the strategic and cultural fit would be beneficial to both organisations.”
Pip Peel, P2 Chairman, adds: “This is a great deal for us and we’re excited by the opportunities the enlarged business creates. Equiteq were instrumental in brokering the deal and getting it over the line – it’s a great deal for all parties.”
