A Tyneside technology firm is embarking on the acquisition trail after sealing a £7m investment to fuel its growth.
ITC Service, an IT managed service provider based in Hebburn, South Tyneside, was founded in 2016 by Christopher Potts and Peter Anderson and over the years it has grown to deliver outsourced IT services to more than 400 SMEs across the North East. The company is seeing growing demand for its services, which include managed IT support, cyber security, Microsoft 365 cloud services, voice, communication, consulting and digital transformation.
Now ITC has secured the seven-figure sum from growth capital investor BGF in a deal which will allow it to continue to scale through a combination of organic growth and acquisitions, including complementary companies in neighbouring regions.
Mr Potts, founder and director, said: “Over the last 18 years, we have built a highly successful, respected business that has developed a strong and valued client base. With the ongoing support of my co-founder Peter, I am excited to lead ITC forward, to continue to grow and support our region, to help more local businesses achieve their goals and complete a carefully executed M&A strategy.
“In order to fulfil this potential, we need an investment partner that is willing to take a long-term approach to support our growth ambitions. With an excellent track record of backing exciting and dynamic businesses in the North East, we are confident BGF is the right choice and we’re delighted to have the team onboard.”
The deal was led by John Healey and Christian Pollard, investors in BGF’s Newcastle team. As part of the investment, Lee Shorten will join the board as non-executive chair.
BGF investor Mr Healey added: “ITC is a real success story in the North East, where it has a long-established track record of delivering exceptional client outcomes. With an appetite to accelerate growth, through a leading service offering combined with a client focused approach, ITC is well positioned to expand its footprint in the regional market.”
BGF, which has funding from a number of the Ƶ’s largest banks, was set up in 2011 and has invested £4bn in more than 600 companies. It describes itself as the most active investor in the Ƶ and says it takes minority, non-controlling stakes with a “a patient outlook on investments”.
ITC and its shareholders were advised by Mincoffs and RSM, while BGF’s advisors were Womble Bond Dickinson and Tax Advisory Partnership.
