Kelway starts search for new PE backer

Seven-year relationship with existing private equity backer Core nears the end as it looks for exit

Aggressively growing Kelway has revealed it is "reviewing its options" as its seven-year relationship with existing private equity backer Core nears the end of the road.

CRN understands that Core, which invested in the firm back in 2006, is looking for an exit within the next 12 to 18 months, with both Core and Kelway management actively meeting potential advisers, prompting some rumour-mongers to assume the firm is up for sale.

The move makes sense for Kelway, which is looking to reach its ambitious turnover target of £1bn over the next three to five years.

Kelway’s most recent half-year results show tracking towards £500m, taking into account the figures from its latest acquisition Equanet, and significant organic growth in excess of 50 per cent.

Sources close to the company also revealed that its recently agreed international partnership with US VAR giant CDW is blooming, with a number of significant customer wins.

Phil Doye (pictured), chief executive of Kelway, told CRN: "We have enjoyed an exceptional first half and it is pleasing to see our strategy bear fruit. We have made significant investments in our solutions business; where we continue to attract the most talented architects and consultants.

"Our managed services and cloud business is performing strongly and the message is resonating well with our customers. We are enjoying great support from our key vendor partners who see us as a vehicle for growth.

"It should not surprise anyone that at some point Core will want to see an exit from their investment."