GCI Com raises £32m to fund acquisition plans

GCI Com raises £32m to fund acquisition plans

Unified comms provider GCI Com is on the hunt for new businesses after amassing a war chest worth more than £32m.

In the past month the company has signed a £10m financing agreement with investment group Business Growth Fund (BGF) and a £22m funding deal with Barclays Corporate.

It said the two funding deals will add momentum to the company’s acquisition and growth plans. GCI Com has pursued an aggressive buy and build strategy since it was launched in 1999, taking over 19 businesses.

As part of the BGF deal, the investor has placed John Cronin on GCI’s board as non-executive chairman. Cronin has previously held senior roles at Arqiva Broadcast, Azure Solutions and BT.

GCI Com founder and CEO Wayne Martin said the investment was a milestone for the group. He said: ‘It gives us the opportunity to significantly build scale and service diversity at a time when our clients need it and the market conditions are ripe for growth.

He added: ‘BGF’s injection of capital and objective operational experience will help us to consolidate the progress we have made to date and continue our active acquisition programme.’

Martin said the deal sees him retain control of the business. He said: ‘I haven’t ceded control of my business, but I am in a stronger position because of their involvement as a partner and long-term equity investor to realise the ambitions that I have for it.’

BGF investment director Tim Whittard said GCI Com was a ‘perfect fit’ for BGF, offering ‘the combination of a strong entrepreneurial-led business and an expanding market’.

He said: ‘The sector in which it operates is enjoying rapid growth due to the convergence of IT and telecoms, the move to cloud computing, and corporate desire to outsource.’

Barclays Corporate’s £22m investment was partly prompted by GCI Com’s deal with BGF, according to Barclays Corporate relationships director James Hague. He said: ‘Since working with GCI Com we have seen real vision within the company and our facilities were structured specifically to help them forge ahead with their growth plans.’

GCI Com claims to be one of the UK’s fastest growing unified comms providers with a 68% compound annual growth rate over the last two years. Its SME customer base includes construction, industrial, media, retail and distribution firms. It has a turnover of around £50m and employs 220 staff across nine UK locations.

Written by Mobile Today
Mobile Today

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