ABEC, a European Building Automation specialist, has been acquired by funds advised by private equity firm Magnesium Capital supported by credit fund DunPort Capital Management.
ABEC provides building and energy management system (BEMS), electrical power monitoring system (EPMS) and industrial grade SCADA (supervisory control and data acquisition) and PLC (programmable logic controller) solutions to some of the largest data centre developers and contractors across the globe, and directly to some of the world’s leading hyperscalers.
Established in 2004, ABEC has grown rapidly over the last decade and will achieve a turnover of over £43m for the 2024/25 financial year. The transaction will see ABEC partnering with Magnesium Capital, a European energy transition investor, to scale globally.
ABEC’s Founder & CEO Matt Morrall will continue to lead the business alongside Chief Operating Officer Matt Litten and both have invested alongside Magnesium Capital as part of the transaction.
ABEC, which employs 150 people in 11 countries across the globe, also has a substantial portfolio of BMS (building management system) maintenance clients comprising a range of commercial buildings and major data centres.
The company’s BMS maintenance offering has also grown significantly in recent years as the systems are increasingly important in helping companies meet their ESG targets. A BMS can manage somewhere between 60% and 80% of all power consumption in any given building, affording companies the opportunity to save power and reduce energy consumption.
Magnesium Capital, meanwhile, advises on investments in fast-growing technology and tech-led businesses that are enabling the shift to a decentralised, decarbonised, and digitised energy system. ABEC’s position as a leading BEMS, EPMS, and BMS solutions provider fits perfectly with its investment thesis.
Magnesium has been supported on the deal by DunPort Capital Management, a leading European asset management company that provides flexible debt capital to Irish, UK, and Western European-based businesses for growth, acquisition, or refinancing purposes through its direct lending funds.
Corporate finance advisors Shaw & Co led the deal on behalf of ABEC’s shareholders following a long-term relationship that stretches as far back as 2013 when Shaw & Co helped the company put working capital facilities in place to support its growth.
Other advisors involved in the deal included TLT, Grant Thornton, Claritas Tax, Walker Morris, KPMG, EY Parthenon, and Addleshaw Goddard.
