A Cisco and Juniper Networks reseller based in the heart of the Cotswolds has joined the M&A trail after snaring a £9m investment.
Cirencester-headquartered Kubus Group has linked arms with BGF, a minority equity investor with a strong pedigree in the UK IT channel.
Founded in 2011 by five big banks in the wake of the 2008 financial crisis, BGF’s current investments include IT services outfit Roc Technologies and Microsoft partner Kocho (in which it invested £10m in 2017 and £6m in 2018, respectively).
Now, BGF has pumped £9m into Kubus, a Juniper Networks, Cisco, Dell, Fortinet and Pentera partner that ranked 118th in Oxygen 250.
In the year ended 31 March 2024, Kubus – which rebranded from Hardware Group in 2022 – claims to have generated £35m turnover and £2.6m EBITDA.
The £9m will be ploughed into targeted acquisitions, efforts to bolster sales and marketing capabilities and operational infrastructure, and exploring new market opportunities and partnerships, the pair said.
Bucking the private equity trend
With one corporate finance expert recently telling IT Channel Oxygen that the number of viable PE targets in the MSP and reseller space is “dwindling”, platform investments in the channel are becoming a rarer spectacle. Secondary buyouts, such as Transparity’s acquisition by Bowmark Capital last week, are becoming more prevalent, meanwhile.
This is not BGF’s first platform investment in the UK tech space in 2024, however – it invested £5m into Welsh MSSP PureCyber in July.
As part of the deal, seasoned Non-executive Chair Paul Brennan has joined the Kubus senior leadership team sourced through BGF’s Talent Network.
“We are thrilled to partner with BGF and leverage their expertise and resources to take Kubus to the next level,” Andrew Humphrey, CEO of Kubus, stated.
“As a business based in the heart of the Cotswolds, we’re proud to be working with businesses and organisations across the world.
“This investment will allow us to accelerate our global growth plans, innovate faster, and deliver even greater value to our customers. With the added support of Paul Brennan in his new role as non-executive chair, the road ahead looks very exciting indeed.”
