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Calyx Managed services, Rickitt Mitchell, MXC Capital, Disposal, Jon Moulton,

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 Desk

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23.02.15