Sage founder Sir Graham Wylie has exited his Newcastle-based IT services outfit, TSG, some 21 years after launching it.
TSG today announced it has performed an MBO that comes with “significant investment” from global investment giant Pictet Group.
The move will see majority owner Wylie, along with executive chairman David Stonehouse, step away from the nationwide managed IT and business applications specialist.
North East business tycoon Wylie co-founded Sage in 1981, and has gone onto be known as one of jump racing’s most successful owners. He was knighted for his services to business and charity in 2020.
Having sold his stake in the accountancy software giant for a reported £116m, Wylie in 2003 launched TSG before expanding it rapidly via acquisition.
Having plateaud in the noughties, TSG’s revenues have rebounded in recent years, bouncing 10% in its fiscal 2023.
Ranking 136th in the recent Oxygen 250, the Microsoft, Qlik, Sage, Pegasus, Sophos, Pulsant, Mimecast and Datto partner generates around two-thirds of its £35.4m top line from recurring revenues. Adjusted EBITDA also grew marginally to £3.5m.
New quartet takes control
The MBO is being led by a quartet of TSG execs in the form of CEO Rory McKeand, chief financial officer Steven Lynn, chief operating officer Rob Jones and chief commercial officer Andy Hayward.
Pictet Group has pledged to inject significant investment into the business over the next five years to support the existing team and future growth.
“The deal will allow us to drive further organic growth and seek opportunities for future strategic acquisitions,” McKeand stated.
“We intend to build on our previous successes over the last two decades and we’ll continue to help organisations unlock the value of technology as we strengthen our position as the UK’s leading mid-market business tech partner.”
Edmund Buckley, Head of Direct Private Equity at Pictet, added: “Our mission is to invest in high quality businesses run by entrepreneurial founders and leaders. We are delighted to partner with Rory McKeand and the broader TSG management team, and look forward to helping the business fulfil its growth ambitions.”
