Management Buy-Out of Veritek Global Limited for £11m
HMT, led by partner Andrew Thomson, director Holly Bedford and manager Matthew Gordon-Smith, advised Newco and a management team led by Jim Edgar (Group MD) and Jonathan Briant (Group FD), on the management buyout of Veritek Global Limited, an Eastbourne-based provider of outsourced technical services.
HMT’s role included sourcing and negotiating funding for the transaction, acting as lead advisors to management and Newco and providing tax advisory services. Mobeus Equity Partners provided a combined debt and equity funding package to support the transaction alongside asset based lending facilities from RBS.
Veritek provides European-wide installation, maintenance and support services for blue-chip owners of a wide range of complex imaging equipment. The company has revenues in excess of £25m and employs c. 300 staff across ten countries. It operates in the photographic, healthcare, ophthalmic, graphics and digital cinema markets. The company plans to expand its European footprint and continue to broaden its offering into new sectors.
Jim and Jonathan have been responsible for the development of the business over the last five years. Mobeus introduced Peter Shawyer, one of its Operating Partners, to Veritek as investing Chairman. Peter is a Non-Executive Director of HSBC Bank Plc., Chairman of M&S Bank and Chairman of Ingenious Media Plc.
Jim Edgar commented:
“HMT offered clear guidance and good advice to management and Newco. The HMT team played a significant role in making sure a balanced deal was negotiated and then delivered to timetable. Andrew clearly demonstrated his market knowledge and deal-making skills in driving this deal and he was ably assisted by Matt who delivered the attention to detail required to ensure a smooth process.”
Chris Price, Investment Director at Mobeus, commented:
“HMT ran a focused process that allowed us to complete the acquisition of Veritek less than two months after signature of Heads of Terms. Having ensured that key points were addressed early, all parties were able to move into focused due diligence. No deal is without challenges in the current climate however Andrew and Matt kept everyone focused on important issues and completion was achieved with minimal fuss.”
Andrew Thomson commented:
“Management have created a strong platform over the past five years and brought the business to a point where it is well positioned to convert a significant number of opportunities across multiple sectors. We are delighted to have advised Jim and Jonathan on this transaction and wish them every success in taking the business into its next phase of growth.”