Advantex capitalises on six-figure advantage

North-East hosting and services to grow alongside staff, equipment, and building investment

Managed services provider Advantex Network Solutions has received a six-figure cash injection from angel investors.

The exact sum was not disclosed.

According to deal advisers at law firm Ward Hadaway, the Gateshead, Tyne-and-Wear based Advantex will be funding further growth of about 20 per cent this year in revenue terms, using capital from the Finance for Business North East Angel Fund, a venture of Rivers Capital Partners.

Imogen Holland, corporate partner at Ward Hadaway and legal adviser to Rivers Capital Partners on the investment, said: "Advantex Network Solutions has a clear vision for its development and ambitious plans for further expansion in its key sectors."

Stephen O'Connell, sales and marketing director at Advantex, said in the announcement that Advantex has seen "real acceleration" in demand so the investment has come at just the right time.

"In June, for example, we secured a £750,000 contract to provide new technology and managed services to 10 academies and colleges across the North East, and we see the education sector as a key source of further growth in addition to providing managed systems for a range of businesses in the private sector," O'Connell said.

Some 40 current employees will be supported alongside planned additional hires of three new sales staff and four additional engineers and support staff.

New equipment, building works, and vehicles will also play a role in the hosted-services expansion, which is expected to help Advantex reach a turnover goal of £4m this year, according to the Ward Hadaway announcement.

Advantex is a managed services provider founded in 2002 with an interest in telecoms, hosting, cloud, service and computers, which it provides to schools and businesses. Customers include Caterpillar and BT.

Nikita Bazko, portfolio manager at Rivers Capital Partners, said Advantex has been building its expertise and experience in a "very competitive" sector for over 10 years.

"It has already proved its worth with a number of contract wins from prominent organisations in the public and private sectors," he said.

The Finance for Business North East Angel Fund is part of the £125m Finance for Business North East investment fund for debt and equity funding to smaller companies in north-east England.