Middle market private equity investor RJD Partners (RJD) has backed the GBP30 million buyout of Intrinsic Technology Limited (Intrinsic), a provider of IT and unified communications solutions and services, from its founder and majority shareholder, Allan Gauld.
The buyout is being led by its Chief Executive, Mike Mason, an experienced IT and telecommunications executive who was brought into the business towards the end of 2009, together with his operational team. Mike Mason has an excellent management track record, with substantial experience of running a variety of IT and communications businesses of differing sizes, including some much larger than Intrinsic. He has also led a number of successful exits in the sector.
Intrinsic is based in Haydock, Lancashire and was founded in 1999 by Allan Gauld. Since inception it has grown consistently to become one of the leading converged communication and IT solutions providers in the UK, with offices in the City of London, Thames Valley, Glasgow and Haydock, and over 50 field-based engineers. Intrinsic designs, supplies and implements voice, data and virtualised environments and provides ongoing contracted maintenance and managed services for a range of customers in both the private and public sectors.
The company has developed strategic alliances and tier one accreditations with a number of the industry’s major players, including Cisco, Avaya, Microsoft and HP and has achieved its strong market position through its commitment to customer service, its flexibility and high responsiveness to market developments. Intrinsic now employs over 125 staff and delivered an annual turnover in excess of GBP27 million in the year to 30 November 2010.
The buyout has been funded through a combination of management re-investment, equity investment, provided through funds managed by RJD, and debt facilities provided by HSBC. Allan Gauld will also retain an equity stake in the Business.
Frank Bulman (pictured), Partner, RJD Partners, says: “Mike Mason has a proven track record of value creation in the IT services sector. We are delighted to have the opportunity to back him in leading a highly motivated and impressive management team in the buyout of Intrinsic. The company is an innovative, leading player in an attractive market with excellent growth potential and we look forward to working with the team to fully exploit this.”
Mike Mason, CEO of Intrinsic, says: “Having worked in the business with Allan Gauld and the management team for nearly two years, I’m delighted to be taking the business forward to the next stage in its strategic plan. Intrinsic has developed an excellent reputation for high quality and responsive customer service. We aim to build on this by taking advantage of both the organic growth and acquisition opportunities presented in a dynamic but fragmented market. RJD are experienced investors in the IT services sector and fully share our ambitious vision.”
Frank Bulman and Jill Williams worked on this transaction for RJD. Frank will be joining the board of Intrinsic.
RJD Partners was advised by Investec (Andrew Pinder/Paul Bail, corporate finance advice); DLA Piper (Jim Lavery/Nick Roome, legal advice); KPMG (Phil Abram/Chris Woodland, financial and commercial due diligence); Heath Lambert (George Minoprio, insurance due diligence) and The Quinn Partnership (Paul Quinn, management assessment).
Management received legal advice from Semple Fraser (Simon Wallwork). The vendor was advised by Ballard Evans (Jon Ballard, corporate finance advice) and Napthens (Keith Melling, legal advice).
