A management buy-out has completed at an award-winning Hull technology company, with the deal seen as a springboard for further growth.
The One Point provides managed IT and telecoms services from a prominent headquarters on Bridgehead Business Park, Hessle. Employing 40 people, it is targeting 50 per cent growth by the end of 2025, taking headcount to 60.
Founder Martin Lauer has taken a majority shareholding, allowing Spectrum - a sister company specialising in managed print and digital services - to exit after a nine year partnership. It will now focus on its own digital growth strategy. A £1.4 million debt funding package was secured by The One Point, enabling it to close the deal while laying the groundwork for expansion. It tapped into Mercia’s SME Loans fund and the Northern Powerhouse Investment Fund the organisation manages.
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Mr Lauer, The One Point's chief executive, said: “With an increasing number of companies outsourcing IT services, our business has been growing rapidly. With the backing of Mercia and NPIF, we can now focus on meeting this growing demand and strengthen our presence in the region, particularly in Yorkshire and the North East, to take the business to the next level.”
Launched in 2005, it provides a single contact for businesses seeking IT services and support, cybersecurity, digital services, CRM systems, apps and internet-based phone systems, data and mobile solutions. The company has offices in Newcastle and Cleckheaton, West Yorkshire, and has grown overall turnover by around 65 per cent in the past five years.
Demand for outsourced IT services is particularly strong, with revenues for its managed IT division up by 79 per cent in the past two years.
Mike Rogers and Rebecca Pickering from the Mercia team worked on the investment. Ms Pickering said: “The One Point enables businesses to access a full range of services from just one phone call rather than dealing with different suppliers. Martin and the team have built a great business with a strong regional presence. The funding will allow him to take full control of the business and allow both parties to pursue their separate growth strategies.”
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Independent consultant Richard Townsend provided fundraising advice to The One Point, winner of a 2021 Hull Live Business Award for customer focus. Nominations for the 2023 edition are now being accepted.
The SME Loan from Mercia was used to complete the buy-out while the NPIF funding will support the company’s further growth. The latter is operated by the British Business Bank.
Regional funds director there, Keira Shepperson, said: “Businesses are moving towards digitalised processes and solutions at rapid pace, and The One Point cleverly identified the demand for a one stop shop for IT needs all the way back in 2005. Its recent growth over the last few years has been exceptional, which has also helped spotlight the Humber area as a thriving region. The team’s success is also a testament to the transformational effects that funding can have in a organisations’ journey, and we hope that it inspires other business leaders to seek funding of their own.”