Wednesday, December 25, 2024

IT group targets UK and global expansion after multimillion-pound funding deal | TheBusinessDesk.com

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Evolve, the Wigan-based provider of Managed Network Solutions and IT services, has secured a multimillion-pound investment from BGF, one of the largest and most experienced growth capital investors in the UK and Ireland.

Founded in 2005, the company has built a strong reputation for helping businesses to reduce costs and simplify the management of services across a variety of sectors, including retail, hospitality, food-to-go (FTG) and petroleum franchises.

In the past four years, Evolve has experienced impressive growth, increasing turnover from £6.8m to a targeted £20m+ this year. It expects to double turnover in the next three years.

The funding from BGF will allow the business to implement ambitious UK and international expansion plans, with a particular focus on growth in the US, where it currently operates more than 1,000 sites across multiple states, mainly in the fuel forecourt industry.

The aim is to expand into the Quick Service Restaurant (QSR) sector.

In addition, the company aims to improve its infrastructure with the creation of a new warehouse in Wigan, target further acquisitions to accelerate growth, as well as increase its national and international headcount by 40% over the next three years. Since 2020, Evolve has grown its workforce from 23 to 117.

Alan Stephenson-Brown, CEO at Evolve, said: “Today’s announcement marks a pivotal moment in Evolve’s journey.

“The investment from BGF is not just a testament to our robust growth and the confidence of our investors, it’s also a strategic step forward in advancing our mission to innovate in our industry, and take the pain out of connectivity for our customers.

“We are excited about the opportunities this investment will unlock and remain committed to delivering unparalleled value to our stakeholders.”

He added: “BGF has the right level of experience we need as an ambitious and fast growth business, with the added benefits of a dedicated value creation team and strong network. Its strong reputation for supporting dynamic and exciting businesses on a wide range of growth strategies makes them an ideal partner as we enter the next phase of our growth journey.”

The deal was led by Pinesh Mehta and Josh Bean, investors in BGF’s Manchester team.

As part of the investment, Adrian Thirkill will join the board as non-executive chair. Adrian, who was CEO of former BGF-backed business, GCI – one of the UK’s largest privately-owned ICT service providers – will bring a vast amount of sector and strategic experience to the board.

BGF Investor, Pinesh Mehta, said: “Evolve has a strong track record of achieving top line growth through a loyal and longstanding customer base that spans 10 countries, with over 6,000 sites now managed by the business across the globe.

“That strength and depth, in both proposition and presence, is driven by a highly experienced management team who have the experience to a scale a business in a robust marketplace that has significant potential.

“Business and support services is a sector that BGF understands inside and out, having invested more than £350m, supporting in excess of 50 businesses. Our credentials, combined with Evolve’s ambition and expertise, makes this an extremely exciting deal and we’re delighted to be joining the team as they embark on this exciting chapter.”

Advisers on the deal were: To the company and shareholders, Blacksquare Advisory (corporate finance); Squires (legal); Saffery (tax). To BGF, Hill Dickinson (legal); Vim Vithaldas (financial due diligence); SBR Consulting (sales due diligence); Hurst (tax); Holtara (ESG).

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