Macquarie Capital Principal Finance has acquired a majority stake in Wavenet Group Holdings Limited, a provider of telecommunications and technology solutions serving thousands of SMEs across the UK.
Macquarie Capital has acquired the majority stake in the business previously owned by Beech Tree Private Equity.
Wavenet, which has offices in Nottingham, Birmingham, Solihull, Chester, Norwich, Cardiff and St Albans, was founded in 2000.
Current customers include the UK Driver and Vehicle Licensing Agency (DVLA), which recently awarded Wavenet a five-year contract to transform contact center services and enables DVLA to provide 24/7 support to his clients.
Over the past five years, Wavenet has grown from £ 14million in revenue in 2016 to over £ 60million in 2021, thanks to a mix of acquisitions and strong organic growth.
Significant investments have also been made in people, network, products and systems, which has enabled Wavenet to support large-scale enterprise solutions, including its recent victory in the contact center and the back-office of DVLA.
Bill Dawson, CEO of Wavenet, said: “I am extremely grateful for the support and guidance from Beech Tree over the past five years, the team has been instrumental in the expansion and development which have resulted in our fantastic growth.
“As a team, we are delighted to continue to build on this growth as we enter 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.
Adam Joseph, Head of Private Equity at Macquarie Capital Principal Finance Europe, said: “We are delighted to partner with the Wavenet team and help them continue their strong growth trajectory.
“This investment provides us with a unique opportunity to deploy our flexible capital to develop a leading UK technology services provider at a time when organizations across the country are seeking increasingly innovative technology solutions.
“Wavenet’s emphasis on supporting businesses in their digital transformation is important and valuable, as businesses seize the opportunities of future technologies. We look forward to using our experience gained in other growing UK companies to support the development of Wavenet from both an organic and acquisitive perspective. “
Paul Franks, Managing Partner at Beech Tree Private Equity, said: “We are delighted to have worked with Bill and the Wavenet leadership team over the past five years. The company has experienced substantial growth – both in size and capacity, including eight complementary acquisitions.
“Wavenet is now one of the major players in unified communications in the UK market. I wish Macquarie and Wavenet every success for the future. “
Financial terms of the transaction are not being disclosed.