UK newcomer looking to 'consolidate ITAD market' following £11m investment
Pegs addressable market at over £300m following UK acquisition
An Irish IT recycling outfit is looking to "consolidate the UK and Europe's ITAD market" after scoring an £11m investment from MML Growth Capital Partners Ireland.
Vyta (formerly known as AMI) also announced this morning that it has made its first acquisition as part of the strategy, grabbing 37-employee, Essex-based ITAD FGD.
It has now promised to pursue a growth-oriented acquisition strategy across the UK and continental Europe, pegging its addressable market in Ireland and the UK alone at over £300m.
Counting the likes of IBM and SAP partner CSI and business comms specialist Arrow Business Communications among its other portfolio companies, MML claims it has a "strong focus" on businesses operating in the circular economy.
Its minority investment in Vyta will see co-founder and CEO Philip McMichael, along with the Vyta management team, remain the largest shareholders. FGD co-founders Leigh Medhurst and Daniel Elson will become Vyta's chief development officers and chief technology officer, respectively.
Vyta claims it already serves a quarter of Ireland's top 200 ICT user companies, with the FGD deal pushing pro-forma 2022 revenues to £16m. It harbours a 2026 revenue goal of £30m.
"The European ITAD sector is a fast-growing but fragmented market that presents a significant opportunity for Vyta Group," said MML Growth Capital Partners Ireland partner Neil McGowan.
"We are impressed by the company's management team and their track record in growing the business to date, which, together with MML's investment and support, positions Vyta optimally as a consolidator in the market."
McMichael added: "MML not only share our growth ambitions but also our sustainability ethos and dedication to growing the circular economy. The funding, along with their knowledge and experience, will be vital to us as we embark on our strategy to consolidate the UK and Europe's ITAD market."