Private equity-backed acquisitions of UK IT solutions providers became a rarer sight in 2023.
Not only have rising interest rates hampered deals, the number of viable platform targets is “dwindling” following a period of frenzied activity, according to experts.
Here we round up seven MSP and IT solutions provider platform acquisitions by private equity houses that defied this trend over the last 12 months.
Of the deals featured, four (including the top two) were secondary buyouts rather than fresh investments.
7. Arc Systems
PE acquirer: Beech Tree Private Equity
Date: April 2023
Deal size: Beech Tree invests between £10m and £35m into “high-growth” UK-based businesses in the technology, financial services and tech-enabled services sectors.
Arc has 57 employees, according to its latest accounts.
Rationale
Beech Tree added a fourth IT solutions provider to its portfolio in April when it acquired a stake in cloud and IT managed services provider Arc Systems.
The duo claim the investment will give Basildon-based Arc extra firepower to “scale up rapidly”, particularly around the Microsoft stack.
Beech Tree also backs cybersecurity specialist Performanta, Google partner Ancoris and Microsoft partner Transparity.
What they said
“Beech Tree’s experience in the sector makes them the perfect partner to support us in achieving our growth aims,” James Clayden, Arc Systems.
