A pair of entrepreneurs have expanded their IT and managed services platform with the acquisition of a South Manchester-based managed services provider. The acquisition was supported by private credit provider TDC.
Alex Heslip and Chris Earle, who exited from Verastar in 2021, embarked on a buy-and-build strategy to create their own managed services platform. Teaming up with Independence Capital, a Greater Manchester-based private equity business, the duo made their first acquisition in 2023 with RISC IT, a North Wales-based cloud services provider.
Novem, based in Cheadle, became the group’s second acquisition. The company specializes in providing IT support services for businesses with 20 to 250 employees, including Microsoft partnership for Modern Work, Azure consultancy, telecoms, and cybersecurity services.
To support the latest acquisition, the group secured a refinance with TDC, which provided a senior credit facility and equity co-investment through its Impact Fund dedicated to funding Northern SMEs for growth and job creation opportunities.
Alex Heslip, group chief executive of the TDC-backed platform, expressed excitement about the acquisition of Novem and welcomed Rhys Watson and Mike Ryan to the leadership team as investors. Rhys Watson, managing director of Novem, shared his enthusiasm for the new chapter and growth opportunities brought by the partnership with Alex and Max from Independence Capital.
Jon Petty, investment director at TDC, highlighted the support for Northern businesses and the potential for further follow-on capital for Novem. The advisers involved in the acquisition included Hill Dickinson, Cortus Advisory, Myerson, Insight Business, and Addleshaw Goddard.
The acquisition marks a significant milestone for the entrepreneurs as they continue to expand their platform and enhance their service offerings for SME customers in the North West region.