ISIS Equity Partners, investing funds from the Baronsmead VCTs, has completed the GBP 11.5m management buyout of CableCom.
Based in Clevedon, near Bristol, UK, CableCom is the market leader in the growing market of IT and communication managed services to multi tenanted properties, primarily focused in the UK student accommodation and key worker sectors. CableCom has over time developed its offering to include the proactive management of a range of communications including broadband, telephony and TV at universities including Nottingham Trent, Middlesex and Glamorgan. The business is also a provider of networking solutions to corporate clients such as Friends Provident, Orange and Legal & General.
The business was founded initially as a cabling business in 1993 by Chris Elliot. Since 2004 management have successfully grown customer and contract numbers, and the strong growth rates are forecast to continue.
For ISIS, the MBO of CableCom adds to their significant experience of backing and growing IT businesses. Previous transactions in the sector have included managed service provider Quantix, service business Panacea, and software companies Blue 8 and Boldon James.
Mark Burchfield, who as Sales Director was fundamental to the growth of the business in the student accommodation and key worker markets, has become Managing Director. Burchfield sees significant future potential growth for the business: ‘CableCom are very well positioned to provide new and exciting communication services to the high density multi tenanted accommodation sector. We have been very impressed with the professional and supportive approach from ISIS and we strongly believe that with their backing we can further capitalise on the prevailing market opportunities and in turn provide benefits to our clients, employees and suppliers’
Paul Morris, who led the transaction for ISIS supported by Richard Bucknell, added: ‘In CableCom we are backing a business with a strong, dynamic management team operating in a market with long term growth prospects. We have been impressed with the historic growth of the business and the quality of customer relationships. We look forward to working with management in developing CableCom still further.’
Gareth Denley has been appointed Non Executive Chairman. Denley was introduced by ISIS and has a wealth of IT related experience from previous roles in IBM, Rebus and Spring Group.
ISIS have invested GBP 5.6m and debt facilities for the transaction and future growth have been provided by The Royal Bank of Scotland Corporate.
