Keysource talking expansion after MBO

Datacentre service provider Keysource has undergone a management buyout (MBO) and indicated that it is considering acquisitions.

The 40-year-old firm based in Gatwick has a turnover in the region of £16m and has a 60-strong team that specialises in designing, building and maintaining datacentre services. The business also specialises in helping customers with energy optimisation and reducing their carbon footprints.

Tosca Debt Capital (TDC) and Shawbrook Bank have provided equity finance and debt funding respectively to support Keysource management. Terms of the deal are undisclosed.

“While the general business environment has been very challenging of late, Keysource has continued to demonstrate profitable growth through the excellent work of the team and support of our clients,” said Stephen Whatling, CEO at Keysource.

“With the backing of a strong financial sponsor in TDC, the business plans to develop its buy and build strategy alongside existing organic growth plans and take advantage of the significant opportunities that lie ahead in our sector.

“Our strong and experienced management team are committed to this strategy and together we are confident that we can deliver strong growth to our shareholders and to support the continued growth aspirations of our business partners.”

Gary Davison, founding partner at Tosca Debt Capital, said that it had been working with Keysource for a number of years and understood the direction the management team wanted to take the business in the future.

“[We] recognise the enormous potential that Stephen’s vision presents for the future of the business. As a result, we’re excited to be able to support the management buyout, and I look forward to playing an active role on the board over the coming months as the business looks to take advantage of growth opportunities,” he said.

Sarah Laverty, director in Shawbrook’s corporate lending team for the North West, said that the Keysource business could take advantage of opportunities out in the market.

“Keysource is a strong business with plenty of opportunity for growth, both organically and via buy and build,” she said.

The MBO comes just three months after Keysource bolstered it management team with the addition of Dan Hyner, who was bought on board in October as finance director to support its growth ambitions.