UK IT Channel News | IT Channel Oxygen
  • News
  • Topics
    • Vendor
    • Distributor
    • Partner
    • Indepth
    • Sustainability
    • M&A
    • People Moves
    • AI
    • Tech trends
  • About Us
  • Partner with us
  • KOcycle Zone
Members
Must-Know Distributors
Oxygen 250
No Result
View All Result
  • News
  • Topics
    • Vendor
    • Distributor
    • Partner
    • Indepth
    • Sustainability
    • M&A
    • People Moves
    • AI
    • Tech trends
  • About Us
  • Partner with us
  • KOcycle Zone
No Result
View All Result
UK IT Channel News | IT Channel Oxygen
No Result
View All Result
Home Business

£200m Microsoft partner Nasstar ‘trading as normal’ despite holding company’s administration

Statement of administrator’s proposals for Nasstar Group Ltd sheds more light on events

Oxygen staff by Oxygen staff
30 September 2024
in Business, News, Partner
£200m Microsoft partner Nasstar ‘trading as normal’ despite holding company’s administration

Image by FlyFin Inc from Pixabay

Share on LinkedinShare on Twitter

Nasstar is “continuing to trade as normal” despite the administration of its holding company, according to a statement from its administrator.

PwC was appointed as administrator for Nasstar Group Ltd on 13 September after the £200m-revenue Microsoft partner encountered profitability and cashflow issues in the wake of its recent M&A drive.

Immediately following PwC’s appointment, contracts were exchanged to sell Nasstar Group Ltd’s shares in Nasstar Ltd to ‘Togo Bidco’ in a so-called ‘pre-packaged administration’.

Nasstar Ltd, which houses circa 850 employees sit, as well as its subsidiaries “continue to trade as normal and no operations are impacted by this transaction”, a statement on PwC’s website reads.

Background briefing

A statement of administrator’s proposals – dated 20 September and recently filed on Companies House – sheds more light on the circumstances leading up to Nasstar Group Ltd’s administration.

Ranking 24th in Oxygen 250, Nasstar grew rapidly via a string of 20 acquisitions in ten years, doubling in size in July 2021 when it acquired KCOM ICT.

As recently as August 2023, reports suggested backer Mayfair Capital was preparing it for a possible sale.

The cloud, comms and cyber specialist saw calendar 2022 revenues vault by nearly a third to £212m, although EBITDA narrowed from £23.4m to £18.9m and net losses widened from £54.4m to £88.1m.

Nasstar Group’s M&A drive left it “highly leveraged”, with its secured creditors owed an outstanding debt of £230.7m, the statement of proposals acknowledges.

Its profitability and cashflow were hit by the “exceptional costs” associated with transforming its legacy acquisitions, while it also experienced a “high rate of customer churn” as it refocused on the upper midmarket.

Preference for a pre-pack

On 6 August, Nasstar Group Ltd engaged PwC after a failure to comply with its 2023 full-year accounts deadline led to a covenant breach.

Despite efforts to find a solvent solution, it was determined that a sale of its shares in Nasstar Ltd and its subsidiaries was the best option.

The purchaser of Nasstar Ltd’s shares is indirectly owned and controlled by entities affiliated with the secured creditors, with a number of its appointed directors also being employees of the secured creditors, the statement of proposals confirmed.

In addition, Nasstar CEO Paul Cosgrave “may be appointed” as one of its directors.

The pre-pack sale “ensures the solvency of Nasstar Ltd and all of its trading subsidiaries, protecting customer and creditor positions, as well as the employment of circa 850 employees”, the statement of proposals read.

It is for a consideration of £1.

The sale is conditional on the purchaser achieving clearance from NISA [the National Security and Investment act], a process that is expected to take up to 30 business days (ie up until 13 October), the statement of proposals stressed.

IT Channel Oxygen has approached Nasstar for comment and will updated accordingly.

A statement from PwC issued to IT Channel Oxygen read:

“Toby Banfield and Zelf Hussain of PwC were appointed as Joint Administrators of Nasstar Group Limited (“the Company”) on 13 September 2024. The joint administrators’ appointment is over Nasstar Group Limited only, which is a holding company. Nasstar Limited and its trading subsidiaries are not impacted by the appointment.”

Tags: featuredNasstar
Previous Post

New 24/7 Cyber Security service addresses ‘fatal flaw’ in industry model”

Next Post

5 things to know as Ingram Micro files for IPO

Related Posts

Elisha Kirkham, Softcat
Careers & Skills

‘How’s this not been done before?’ – channel talent pros unite to tackle common challenges

30 May 2025
Klaus Schlichtherle, Infinigate
Distributor

Infinigate outgrows its 11 major peers, reaffirms €5bn target

29 May 2025
‘By far the most important factor’ – analyst on Softcat’s share surge
News

‘By far the most important factor’ – analyst on Softcat’s share surge

28 May 2025
Westcon Comstor HQ
Distributor

Cyber generates more than half Westcon-Comstor’s sales for first time

27 May 2025
v
Big Interview

‘We redesigned the whole business’ – LIMA CEO on services reinvention

27 May 2025
Matt Jones, Cisilion
People Moves

Cisilion keeps up with the Jones in quest for £100m

22 May 2025
Geoff Kneen, Advania
M&A

Advania ‘not throwing baby out with bathwater’ as CCS Media and Servium rebrand date looms

21 May 2025
Comet logo
M&A

Misco sells Comet to focus on core business

21 May 2025
Next Post
Ingram Micro HQ

5 things to know as Ingram Micro files for IPO

Follow Us

IT Channel Oxygen keeps you informed on the UK IT channel and its sustainable transformation. Learn more

  • About
  • Our Team
  • Partner with us
  • Privacy Policy
  • Terms & Conditions
  • News
  • Cookie Policy (UK)

© 2025 IT Channel Oxygen

Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behaviour or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
View preferences
{title} {title} {title}
No Result
View All Result
  • Oxygen 250
  • Must-Know Distributors
  • Member area
  • KOcycle Zone
  • Big Interview
  • News
  • Indepth
  • About
  • Partner with us

© 2025 IT Channel Oxygen