Beech Tree Private Equity, which has agreed to the sale of a Solihull-based telecommunications company to Macquarie Capital Principal Finance, has been named as the Deal of the Month for May.
Beech Tree invested in Wavenet in 2016 and helped it accelerate its growth from £ 14m in revenue to over £ 60m in 2021, through a mix of acquisitions and organic growth.
Established in 2000, Wavenet provides telecoms and technology services to thousands of businesses and businesses across the UK. It has offices in Solihull, Chester, Norwich, Cardiff, St Albans and Nottingham and employs over 200 people.
At the time of the transaction, Paul Franks, Managing Partner of Beech Tree Private Equity, said: “The company has grown significantly, both in scale and in capacity, including eight targeted acquisitions.
“Wavenet is now one of the most notable unified communications players in the UK market. I wish Macquarie and Wavenet every success for the future.
Bill Dawson, Managing Director of Wavenet, added: “I am extremely grateful for the support and guidance from Beech Tree over the past five years the team has been instrumental in empowering the expansion and development which resulted in our fantastic growth.
“As a team, we are delighted to continue to build on this growth as we embark on our new partnership with Macquarie. I am confident that the passion and quality of our people, management and infrastructure combined with Macquarie’s experience will lead us to even greater success in the future. “
The Wavenet transaction follows further investments by Macquarie Capital in mid-sized UK companies. One example is Glasgow-based Energetics which, under the five-year ownership of Macquarie Capital, has increased its workforce by 75 percent.
Macquarie Capital has also helped finance the growth of Premier Technical Services Group (PTSG), based in Yorkshire.
Adam Joseph, Head of Private Equity for Macquarie Capital Principal Finance Europe, said: “This investment provides us with a unique opportunity to deploy our flexible capital to develop a leading UK technology provider at a time when organizations across the countries are looking for more and more innovative technological solutions.
“We look forward to using our experience gained in growing other UK businesses to support the development of Wavenet from both an organic and acquisition perspective.
Corporate finance advice was provided to Wavenet and Beech Tree by Oakley Advisory.
Legal services were provided by Eversheds.