Better Capital exits IT services firm
BETTER Capital, the investment company run by venture capitalist Jon Moulton, has sold Manchester-based IT company Calyx Managed Services for £9m.
Based at the Towers Business Park, Didsbury, CMS had revenues of £24m in the year to December 2013 and has around 200 employees.
It has been acquired by MXC Capital, a specialist investment bank focused on the technology sector.
In a statement Better Capital said: “In considering the position of the Calyx Group and the likely opportunities for value creation from the two constituent parts, a decision was made to retain m-hance and pursue a sale of the CMS business.
“CMS was considered sub-scale to other operators in the sector and it was not felt appropriate to apply further capital in seeking acquisitions to increase its critical mass.”
Following a competitive auction process involving a number of interested parties, CMS was sold for an enterprise value of £9m which, after deducting sale costs and management incentives, results in £7.8m being returned to Fund I.
“The directors wish the CMS team every success in the future under their new ownership.”
Better Capital was advised by Manchester-based corporate finance house Rickitt Mitchell and a team from law firm Eversheds.
— Business DeskBack to news