VAR Panacea has undergone a management buy out (MBO) and is already on the lookout for acquisitions.
The firm, which partners with IBM, Microsoft, Sage and Business Objects, completed the MBO in conjunction with venture capitalist Isis Equity Partners, which invested £6.2m in the VAR as part of the transaction.
Paul Turner, chief executive of Panacea, led the MBO. He told CRN: “We want to grow the business with this additional funding, and increase the range of the services we provide.
“We are hiring new staff and targeting acquisitions. We are currently looking at three possible targets, and hope to complete a deal by the end of the year.”
Turner said acquisitions will allow Panacea to expand its geographical presence and service customers nationwide, expand its product portfolio and allow it to gather knowledge in additional vertical markets.
“Panacea was owned by two private individuals who have left the company,” Turner added. “Isis will give us the opportunity to grow.”
Andy Gregory, investment manager, led the deal for Isis, said: “The [Panacea] business has an excellent breadth and depth of IT skills to provide its client base with. We are confident that Turner and the rest of the management team will continue to grow the firm.”
Gregory and portfolio director Martin Robertson will join the Panacea board on behalf of Isis, while Tim Bittleston, the former group chief executive of retail equipment vendor DigiPoS, has joined as chairman.
Peter Rowell, chairman of corporate investment specialist Regent Associates, said: “Deals such as the Panacea MBO are commonplace. If it was another IT firm investing, it would be to consolidate the Panacea business. But a financial buyer will leave the management in place and invest funds.”
Rowell added that the move will allow Panacea’s management to have more control over the business.
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