Deal announcement - Virtua UK

News: Investment News | 18 August 2015

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We are pleased to announce a £4.6 million growth capital investment to support Virtua UK Ltd, the specialist telecoms engineering company.

  • Investment date: August 2015
  • Investment: £4.6m
  • Legal Advisers to Connection Capital: Gateley plc

Connection Capital clients’ investment will be used to fund working capital to drive accelerated growth (EIS eligible funding), as well as to fund the acquisition and integration of Astral Specialist Contracts Ltd, a smaller player in the sector, from its existing cash resources and debt facilities. Virtua provides engineering services (design, installation, testing) for the roll out of 2G, 3G, 4G and wireless networks, on behalf of the large Mobile Network Operators (‘MNOs’). It also provides these services for individual developments (e.g. Terminal 2, Wembley Stadium, the “Walkie Talkie” skyscraper in London) where the landlords require independently installed, multi-operator systems that work with all networks rather than just one.

The investment proved very popular with Connection Capital clients because:

  • established, high quality management team
  • the demand for Virtua’s service is expected to grow in the short and medium term
  • the market is changing in Virtua’s favour and the business is well placed to capitalise on this
  • Virtua is a full service business with a blue chip customer base
  • low risk structure with low gearing
  • active M&A market in the sector providing both acquisition opportunities and trade and PE exit routes

Connection Capital has sought to structure the transaction in a secure and tax efficient manner for its clients via an EIS eligible Ordinary Shares structure. The completion of the Virtua investment comes hot on the heels of Connection Capital’s investment in the £20m management buy-out of Carter Cabin Hire Limited which completed in July.

“Virtua is a well-established, high quality business operating in an exciting and expanding sector, with a blue chip customer base, a well-invested platform for growth and an experienced, forward-thinking management team behind it – all of which made it a very attractive opportunity for Connection Capital’s clients.” – Miles Otway, Partner