Connection Capital-backed Managed Services Provider Mode Solutions Acquires EACS

News: Investment News | 6 June 2022

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  • Transformational acquisition continues expansion of the platform
  • Debt refinancing supported by Blackrock, with additional acquisition funds available

(6 June 2022) Connection Capital-backed Mode Solutions, a leading provider of turnkey digital managed services, today announces the transformational acquisition of Huntingdon-based IT Managed Services provider, EACS.

The enlarged business, now supported by a debt refinancing through BlackRock with additional acquisition funds available, from both BlackRock and Connection Capital, will offer businesses a trifecta of services covering Managed IT, Communications and Document Management.

In August 2018, Connection Capital clients completed an £8.1m investment to support the MBO of Mode Solutions. Over the course of the investment, Connection Capital has provided strategic M&A support, including the Company’s acquisition of Nix Communications in December 2019 to incorporate Unified Communications and network services.

Mode’s offering is further diversified by the acquisition of EACS, which has a strong presence in financial services and delivers a comprehensive range of Managed IT services and solutions to high-quality mid-markets. Accreditations include multiple Microsoft Gold competencies, Cyber Essentials, 24/7 Network Operation Centre (NOC) and Security Operation Centre (SOC).

The transaction was supported by debt facilities from BlackRock Investment Management (‘BlackRock’) via its European Mid-Market Private Debt fund. BlackRock’s funding provides an attractive funding structure, alongside further acquisition facilities to support Mode’s future acquisitions.

Following the successful transaction, Mode significantly expands its capability into IT Managed Services and broadens its geographic reach and scale to more than twice exiting revenues. The Company now boasts three UK sites, a combined headcount of over two hundred, and a core customer base of almost three thousand.              

Mark Snaith, Investment Director at Connection Capital and the deal lead comments, “Mode has transformed significantly since Connection Capital clients’ initial investment in 2018 and its latest acquisition is a significant statement of intent as it executes on its buy and build strategy. Connection Capital focuses heavily on adding value to the businesses it chooses to partner with and it has been a pleasure supporting Alex and the team, on what is arguably, Mode’s most transformational transaction to date. The acquisition of EACS cements Mode’s status as a platform, poised to capitalise on a multitude of attractive growth opportunities.”

Alex Tupman, CEO commented, “An acquisition of this size and quality further demonstrates our growth ambitions and evolution from our heritage, as well as delivering on our strategic objectives to offer a full trifecta of digital services to UK businesses from a single source with a reputation for providing an outstanding customer experience.”

Kevin Timms, Chairman and CEO of EACS said, “With companies choosing to accelerate IT outsourcing and digital transformation programmes in the wake of COVID-19, a true single source supplier with exceptional service delivery will enhance customer experience. We believe Mode is the right home for our customers and staff, particularly given the shared ethos of excellence in customer service.”

About Connection Capital

Connection Capital LLP is a Financial Conduct Authority authorised and regulated, specialist syndicator of investment funds from private professional investors into direct private equity, private debt and commercial property deals, as well as alternative asset funds. It currently has over £400 million of funds under management across a diverse portfolio.

Connection Capital provides a specialist managed service to help professional clients build up their own alternative asset portfolios. Private investors self-select which opportunities they want to take a stake in. Opportunities are identified and negotiated by Connection Capital, which also carries out all due diligence and manages the investment from completion through to exit, on its clients’ behalf.

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