Midlands ICT services provider sold to private equity firm for £60m

Succession Group

Mayfair Equity Partners has acquired a majority stake in converged ICT Services Provider GCI.

The investment by Mayfair of £60m includes the formation of a new strategic fund providing GCI with significant financial firepower to finance future strategic acquisitions.

As part of the transaction, Mayfair has purchased the majority of the equity held by chairman Wayne Martin, who will remain on the GCI board, and the full minority stake held by BGF, which has backed the business since 2012.

Adrian Thirkill, CEO of GCI says: “We’re excited to have Mayfair on board as we embark on the next phase of the company’s growth. Our immediate objective is to continue to fully integrate what we have and in the coming months we will see all GCI group companies operating under one brand with common systems and processes.

“This will significantly enhance our service offering to customers – making it easier for them to use more of our innovative and broad range of services. Whilst there are currently no significant gaps in our portfolio, we operate in a fast-changing market and the new £60m+ fund will enable us to make strategic acquisitions over the coming months and years to add even more value to our customers.

“This is the right opportunity to thank our previous investor Gurinder Sunner from BGF who has been hugely supportive of GCI and backed us with the funds and support necessary to fuel our strong growth over the last six years. Mayfair Equity Partners has an outstanding record in supporting high growth businesses. I have worked with them in a previous role and know that their ethos of responsible investment matches ours, with a focus on building strong partnerships with exceptional management teams – they’re in it for the long term – as are we.”

The investment in GCI comes at an exciting time for the company. Over the last two years GCI has acquired Packet Media, Fusion Media Networks, Outsourcery, Freedom Communications, and Blue Chip Data Systems, taking the company’s revenues to £100m.

Mark Allen, CFO of GCI added: “The deal with Mayfair is the right one for all parties. It rewards Wayne and BGF for their long-term support of the company but equally means that we can continue to invest in building our headcount, systems, and support for customers. The £60m plus fund will be held purely for financing strategic acquisitions and will be spent over the longer term as this fast-moving business evolves.”