The UK’s most active investor BGF has sold its minority stake in communications and IT service provider Vysiion Group.
BGF has agreed a deal with Exponential-e, a cloud, network and unified communications company.
The transaction marks the end of BGF’s five-year involvement in Vysiion, which it began backing in 2015 with a £4m investment.
During this time, revenue and EBITDA have more than doubled, and the exit has delivered a strong return for all shareholders.
Founded by serial entrepreneur Bruce Brain, Wiltshire-based Vysiion Group was set up to create an IT services provider that could take advantage of the large and rapidly growing Public and Private sector market for infrastructure and outsourced IT space.
James Austin, an investor at BGF who will step down from the board of Vysiion Group, said: “In Vysiion Group we found a differentiated mid-market player with deep expertise in outsourced cloud services.
“BGF has delivered a money multiple of c.3x and a strong return for all shareholders.
“We supported Bruce and team in their first external acquisition creating a group with unique capabilities.
“Our patient and flexible approach has helped to achieve another milestone in Vysiion’s journey, and it goes to a great home.”
Bruce Brain, Chair of Vysiion Group, said: “The investment and support from BGF over the last five years has been instrumental in the development of Vysiion.
“Today’s acquisition by Exponential-e will see the business well placed to further build upon its strategy of utilising its strong reputation within the utilities market of delivering and supporting Critical National Infrastructure.
“I’m very proud of the achievements of this team and I know they will go from strength to strength.”
The deal was led for BGF by Fiona Gibson and James Austin. Advisors for the vendors included Al Halcrow and Guy Eggleton of Isca Ventures (corporate finance), Mark Allen and Alex Sowerby of Crowe (financial structuring support) and Charles Van der Lande and Richard Hopkins of Roxburgh Milkins (legal advice).