Acquisitive GCI bags £60m M&A warchest

Comms provider snares growth funding from new private equity owner Mayfair

GCI today announced that private equity house Mayfair has become majority stakeholders in the business, along with providing a £60m investment fund for further acquisitions by GCI.

The IT services provider has made numerous large acquisitions in the past couple of years, including Blue Chip Data Systems and Freedom Communications. This £60m "war chest" will serve as a fund to invest in future expansions. Adrian Thirkill (pictured), GCI CEO, told CRN that the company is in no hurry to make more acquisitions.

"We are in no rush and the funds will be focused squarely on strategic investments that provide us with speed, scale, and market share," he said. "We do not currently have any gaps in our portfolio, but we operate in a fast-changing market. We will continue to keep a keen eye on innovative companies that can further add to our service range and augment the value we offer to customers."

Thirkill declined to comment on what percentage stake Mayfair now holds and on how much the deal was worth, but said he is "very pleased" with the firm coming on board as backers, adding that it was the "best fit" for GCI's current customers. "We considered all options for the business and conducted an exhaustive six-month process which encompassed around many interested parties, some trade, some private equity," he explained.

The move means previous majority stakeholder BGF will be exiting entirely from the business, Thirkill confirmed. He also confirmed that chairman Wayne Martin, who also sold the majority of his share to Mayfair, will continue to retain a stake in the business.

Although, Thirkill says no acquisitions are in the pipeline, Mayfair's backing and investment suggests that the company has plans for future large acquisitions. "BGF have been great partners for GCI but their skill set is in working with smaller organisations. Mayfair will bring greater larger PE expertise," he said. "The £60m provides us the war chest to fuel further expansion - as and when needed."