Fast-growing Microsoft partner Zenzero has swapped private equity backers, with Macquarie Capital replacing incumbent Fordhouse Capital.
The Australian-headquartered private equity house has taken a majority stake in the Coventry-based MSP in a move it claims will “enhance its growth potential”.
The deal comes despite a slowdown in private equity activity in the UK channel in 2023 and warnings that it “isn’t a good time” for midmarket MSPs to be starting a managed sale process.
Fordhouse Capital invested in Zenzero in 2020.
In the intervening period, Zenzero has made a string of acquisitions, most notably that of 44-employee, Aberdeen-based Dynamic Edge Solutions in January 2022.
According to the most recently filed annual accounts of its holding company, Zenzero generated revenues of £14.9m in the 18 months to 31 March 2022. Average staff numbers stood at 141 during the period.
Macquarie’s appetite for M&A
Macquarie Capital said it would support its new ally with “both flexible growth capital and expertise”. It also owns unified comms provider Wavenet, which IT Channel Oxygen recently named as the second most acquisitive UK MSP/reseller of 2023.
Zenzero styles itself as a provider of “future-ready managed IT, cyber, data and digital services” to SME and mid-market customers
“The opportunity for growth within UK SMEs, and the mid-market, for our services is clear,” Zenzero CEO Michael Bateman stated.
“As a team, we look forward to building on our success to-date through the new partnership we have with Macquarie and continuing to invest in our people, service offerings and high-quality acquisitions.”
Adam Joseph, Head of Private Equity for Macquarie Capital Principal Finance Europe, added: “We’re excited to be partnering with Zenzero at a time of sustained growth for the company.
“The transaction sees us build on our track record of supporting innovative technology service providers in the UK, and demonstrates our ability to deliver an efficient transaction in a short timeframe.
“We look forward to helping the company grow both organically and via acquisition”.
