Syscap opts for buy-out

Follwing a review of its company, leasing firm decides on management buy-out

Finance and leasing firm Syscap has undergone a management buy-out (MBO) following the completion of a strategic review of its business.

Syscap decided earlier this year to hire investment bank NM Rothchild to carry out a review of the business (CRN, 3 April).

Last week, the Syscap board of directors approved a private equity funded MBO of the group. The agreement involved investment from specialist financial services equity fund AnaCap Financial Partners.

Existing Syscap directors Philip White, Sean Read and Mark Gidge will be the principal individual Syscap shareholders, with White taking over as Syscap chief executive.

“This was something Sean and I had been working on for some time,” said White. “The AnaCap investment means we can maintain our managed book strategy, build on existing relationships and continue to act in the best interests of our customers.”

Current chief executive Sean Williams and Lord Mitchell will both maintain some investment in Syscap, but Mitchell will step aside as chairman.

George O’Connor, technology analyst at Shore Capital, told CRN: “Syscap had three options following the strategic review. It could have done an Initial Public Offering which would be difficult in the current market; it could have done a trade sale, but it would have been to the detriment of the business; so the MBO was the best option.”