An award-winning IT company based in one of the North East’s best located office developments has secured investment that will value it at around £200m.
Aspire Technology Solutions, a former North East Company of the Year, will use the funding to support its growth. The company is based at Pipewell Studios, the offices overlooking the Tyne converted from the former Baja Beach Club nightclub.
It specialises in providing a range of IT services – including cyber security, the cloud and communications –and has seen significant growth in recent years.
Existing financial backer LDC, part of the Lloyds Banking Group, and new minority investor Federated Hermes, have now put in fresh funding as the company aims to reach annual revenues of more than £100m by 2030.
Chris Fraser, co-founder and CEO of Aspire, said: “This investment marks an important new phase for Aspire. Our growth has always been driven by a clear focus on our customers and on delivering innovative solutions with exceptional service.
“That focus has set us apart and it remains the foundation of everything we do. LDC has supported our ambition since 2022 and their continued partnership as a lead investor, now alongside Federated Hermes, gives us the platform to move forward with confidence. Our direction is clear.
“We will continue to scale through sustained organic growth and customer focus. This investment enables us to further strengthen our capability and deliver across the Ƶ.
“We see significant opportunity ahead and we are committed to growing in a way that brings customers even greater value, service and security.”
The transaction was led by LDC’s Gareth Marshall, partner and head of North East and Scotland and investment manager Emma Borrie. Mr Marshall said: “Since our initial investment, Aspire has more than doubled in size while successfully integrating two complementary acquisitions and maintaining the customer service standards that set them apart in the market. The organic growth rates they’re achieving are genuinely market-leading for the sector.
“As lead investor, we’re excited to continue to support Chris and his team through this next phase.
“With Federated Hermes joining as a co-investor, Aspire has the platform to pursue both organic expansion and a more active M&A strategy in a market where demand for managed IT and cyber security services shows no sign of slowing.”
As part of the transaction, Tim Hipperson steps down as non-executive chair after three years. He will be replaced by David Murray, who has more than 30 years of experience in supporting technology business growth.
As well as its head office in Gateshead, Aspire has offices in Glasgow, Leeds, London and Stockton-on-Tees. Its most recent accounts, published in August, showed a 28% growth in revenues to £50.9m and operating profits almost doubling to just under £7m.
The company’s headcount grew from 250 to 283 during the accounting period.
