US Based Private Equity Giant Buys Access Group


January 20, 2015

The technology industry has started the year by making a lot of deals and the private equity firm TA Associates announced yet another deal in the sector. The US based private equity giant is buying the technology company Access Group in a deal worth close to £225 million.


Strong Technology Company
Access Group is an Essex-based technology firm, focused mainly in software consultancy and development. It’s headquartered in Colchester and it’s a mid-market sized company in the UK.
According to City A.M., the company employs around 450 staff and it has a 6,000-strong client base. Its most notable customers include the rugby club, Leicester Tigers, and the global logistics company, DHL. The new buyout might help the company turns its attention abroad, as some analysts believe the company might well be looking for an international market position next.


Lyceum Helped the Company to Grow
Investment specialist Lyceum Capital bought Access Group in a £50 million takeover in 2011 and the company has flourished under Lyceum’s management. According to Yahoo Finance report, the company’s revenue has increased to more than £60 million, with its earnings before interest, taxes, depreciation, and amortisation (EBITDA) being three times bigger. Furthermore, organic revenue growth has been close to 12% annually since Lyceum took over.


During the time under Lyceum, the company has also acquired a number of its resellers, with 12-targeted acquisitions completed. It has been successful in enhancing its market position.


Chris Bayne, the chief executive of Access Group thanked Lyceum in the official statement saying, “With our world-class team and products, and the support of Lyceum Capital, we have built a commanding position in the market, combining strong organic growth with strategic acquisitions to transform our customer proposition. I would like to take this opportunity to thank the Lyceum team and the departing non-executive team of Gareth Denley and David England.”


The management team is set to make a good return for its investment, with some expected to reinvest their money to the new venture.


Lucrative Investment Opportunity
It is therefore no surprise that TA Associates found the company interesting. The global growth private equity firm has been investing in a number of companies in the past few months. It currently has a portfolio of over 440 companies, and has been able to raise nearly $18 billion in capital, according to Growth Business.


The firm has previously focused its investment in the financial services, business services, healthcare and consumer industries, but it also has an established portfolio in the technology industry.


The firm’s director, J. Morgan Seigler, said in a statement, “With a history of consistent growth, an impressive customer base, and an experienced and committed management team, Access is a highly attractive investment for TA”.


It is though the deal could be worth £225 million, although the details of the deal weren’t announced. The deal is expected to close later this month. Private equity has continued to focus its efforts into the technology sector and similar deals are expected to take place, as firms are eager to invest their vast amount of equity.


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