MBO creates succession at Sunderland IT business
The management team at Sunderland-based Communications and Internet Service Provider, NTE Limited, has completed the sale of its business, increasing its growth, securing employment of its current workforce and creating a significant number of new jobs.
NTE Limited based in Moorside Park, Doxford, provides communications and connectivity solutions to resellers and businesses throughout the UK. Its current turnover is forecast to be more than £5m by the end of its current financial year in June with growth forecasted to reach £6m in 2018.
The Management Buy Out (MBO) has been completed for an undisclosed sum and creates succession and continuity. The deal has secured 22 jobs at the company with plans in place to grow the head count by 30% as part of the company’s future growth strategy.
Founded in 1987, the company supplies a range of communications technologies together with network and cloud-based service hosting, which are delivered by its in-house technical team and on-site field engineers.
The MBO team consists of current Managing Director, Pauline Herring, along with Operations Director, John Patterson and Sales Director, Phillip Herring. Pauline has been with the business for over 20 years, and was appointed as Managing Director in 2012. Supported by the management team and its experienced workforce, she has helped further NTE’s reputation as a successful and trusted technology provider.
She said: “We are very proud of what we have achieved as a management team at NTE, which we aim to build upon as owners of the business. NTE has a loyal and talented workforce along with a dedicated network of resellers that have played a part in our growth over the years. We have exciting plans for the future, which will help expand our team and strengthen our UK presence.”
Funding for the deal was provided by HSBC Bank plc, with corporate advice for the management team delivered by Square One Law and Clive Owen Corporate Finance.
Angus Allan, Corporate Finance Partner at Clive Owen said “We are delighted to have assisted the management team in achieving their objective of buying the business. Whilst the negotiation process was complex, the business is well positioned to deliver growth in the years ahead”.
James Bryce, Head of Corporate-Commercial at Square One Law worked with Ashraf Ali, associate on the deal. Ashraf said: “This MBO has provided an important succession opportunity for the business, which is securing local jobs and creating the potential for new employment and expansion. The significant experience of the owners in leading the management team over the past 9 years will set the business in good stead for the future.”