MML Capital Partners (“MML”) has invested £36m into CSI, a leading IT Managed Service provider to the attractive and fast growing UK mid-market.
CSI provides mission critical Managed Services to mid to large sized corporates with complex IT requirements, delivering solutions which combine deep expertise across Infrastructure, Applications and Cyber Security. This enables it to manage, improve and secure core IT systems that sit at the heart of client's operations. The business benefits from an attractive client base that generates strong quality of earnings from multi-year contracts and high cash conversion.
MML is investing alongside IT Industry veterans Alan Watkins and Kevin Lewis who, through their investment vehicle Blackhawk Capital, acquired CSI in 2012. Over the last five years they have grown CSI through a combination of acquisitions and significant organic growth. The business has strong visibility over its FY17B of £48m revenue and £9m EBITDA. CSI has developed and acquired highly technical skillsets across a wide variety of technologies, in particular with market leading expertise in SAP and IBM.
Rob Devonshire, MML Director, comments: ''We are extremely pleased to be partnering with Alan, Kevin and the management team at such an exciting time for CSI. The growth opportunity is significant with the ongoing trend towards outsourced IT Managed Services and cloud based solutions. CSI’s combined skillsetacross Infrastructure, Applications and Security provides for a highly differentiated offering. This, alongside its substantial client base positions the business well to capitalise on the market opportunity.’’
Alan Watkins, Executive Chairman of CSI, comments: “Over the course of the last five months we have got to know MML very well. Kevin and I have every confidence that they will be a great partner for CSI as we enter the next chapter of the story. They have done everything that they said they would do, demonstrated real commitment and our trust and confidence has grown about the partnership we are about to embark upon.”
The MML deal team comprised Bal Johal (Managing Partner), Luke Jones (Partner) and Rob Devonshire (Director).
Debt to support the transaction was provided by Permira Debt Managers and RBS (RCF and daily transactional banking).