A Wiltshire IT company has completed a strategic merger with an IT firm in Bristol after securing a six-figure finance facility from HSBC UK, in a deal that was concluded at the height of lockdown.
MDS Technologies, which designs, builds and manages Cloud infrastructures, platforms and IT solutions predominantly for large public sector clients, has used the funding to acquire Bristol IT Company, which provides IT services for the private SME market. The HSBC UK funding will also be used to create highly skilled jobs for the regional economy over the coming months and years.
The two brands, which will continue to operate as separate entities in the short term, will now be able to expand its combined portfolio across the South West and nationally and bolster its technical and commercial capability.
Simon Jacobs, Managing Director of MDS Technologies, said: “Following our strategy, merger discussions with Bristol IT began in late 2019 and before the COVID-19 crisis started to emerge in the UK. Having identified Bristol IT Company as the ideal business with which to increase the breadth and depth of services and capability available to our existing and future customer bases, all parties were excited to drive the deal through to a successful completion.
“Since lockdown, both companies have experienced significant increase in demand for our services, particularly in the areas where technology enables remote working and productivity enhancement which have been critical in ensuring business continuity.
“The funding package provided by HSBC UK is the culmination of a long-standing relationship with HSBC UK, which has been a great supporter of MDS. Completing a deal like this in such challenging times is testament to the energy, determination and recognition that this was an opportunity not to be missed or derailed by external events. We’re incredibly grateful to the bank for its support.”
James Shepherd, Head of Corporate Banking, Bristol, Gloucestershire and Wiltshire, HSBC UK, added: “The consolidation of MDS and Bristol IT is a great indicator of the success of both businesses, which each have different roles and markets but will eventually expand its range of products and services as one to support the wider UK market.
“Our latest round of funding was crucial to helping these businesses realise their ambitions and we’re delighted that the deal could still go ahead despite the lockdown. We look forward to continuing our relationship as both entities grow.”
MDS Technologies boasts an impressive client base of organisations requiring a high level of IT infrastructure, including the Home Office, Ministry of Justice, Ministry of Defence and the NHS. Bristol IT Company works with several large international corporations, as well as regional companies such as Bristol Music Trust, Molson Group, Brisdoc and The Bottle Yard Studios.
The merger was supported by Clarke Willmott, RSM, Temple Bright and Milsted Langdon.