Modern Networks CEO sets bold growth targets following double acquisition

MSP received private equity backing from Horizon Capital in April

The CEO of MSP Modern Networks is targeting £50m in yearly revenue by the end of 2025 and also expects the business to double its headcount during that time.

Modern Networks, which employs around 155 people, provides IT support, network services and telecoms primarily to the commercial property business and last week announced it was acquiring telecoms service provider Bridge Fibre and another MSP in Response IT.

The business itself sold a majority stake to private equity firm Horizon Capital back in April, and CEO Matt Reeve believes the Hitchin-based MSP can reach £10m EBITDA over the next five years alongside his target for revenue.

"I think over a five-year plan to grow the business, we will be doing two or three acquisitions a year," he said.

"Our acquisition strategy is threefold. We're looking to add other companies that have a very strong presence in the built environment, particularly commercial real estate, then we're adding additional capability for the services that either we don't provide today, or to consolidate what we already do.

"And lastly, geographic expansion, so we're looking to improve our coverage of the whole of the UK."

Reeve added that he was looking to grow the business into the industrial sector, which includes industries like manufacturing and technology, as well as the public service sector to focus on charities.

The acquisition of Bridge Fibre would "bolster" its own ISP, Reeve claimed, while Response IT would give the company a better presence in the south of the country while adding extra capabilities to its portfolio. The combined business has already taken Modern Networks' revenue from £12m a year to £20m.

He confirmed that both companies would be brought under the Modern Networks branding "in time" and that both management teams would remain part of the structure.

"The business has already had strong organic growth, which has exceeded 10 per cent per annum, so it's been double digits for most of our history," Reeve added.

"When we take on organisations, we're very much looking to take on the staff, because that's where the expertise and knowledge resides.

"We've obviously done this probably quite a lot quicker or better than we'd planned, so we're really pleased to have done two within the first four months, almost in the first quarter, following the backing from Horizon Capital."