Amorous investor seeks IT services love match

Investec ready to splash the cash to help IT services firms make journey to cloud

Bank Investec is making overtures to mid-sized UK IT services firms that require investment in their cloud infrastructure.

Investec's Growth & Acquisition Finance division works with entrepreneurs, management teams and private equity houses to provide finance of between £5m and £50m to UK mid-market companies.

Previous investments in the IT channel include managed services specialist Attenda and Niu Solutions, a buy-and-build VAR it exited in August.

Investec claimed that IT services firms will need private equity investment as IT and e-commerce applications migrate to the cloud. It also stressed that it is "ready to invest in that future".

Such investment will be used to help IT services firms upgrade their infrastructure to maintain reliable and secure systems to meet strict SLAs and guard against system downtime, said Investec.

It is not the first time this year that the tech sector has been touted as a target for increased private equity investment.

John Clifford of Investec said: "In order to provide the infrastructure required to meet the needs of clients, outsourcing companies will need access to capital. And given the range and flexibility of financing solutions we offer mid-sized companies, this is a very exciting opportunity for us."

Clifford claimed the tough economy is prompting end users to outsource hardware, software and services to third parties. The rise of so-called big data is also driving demand for higher volumes of IT storage, which can be provided cheaply and on a flexible basis by a third party, he added.

As a result, Investec predicted that 2012 may see an increase in the number of IT outsourcing firms that bag investment from firms such as itself.