Aliter Capital establishes a new platform in its second fund
Aliter Capital LLP (Aliter), the specialist investor focused on small to mid-size UK support services businesses, has announced the completion of its investment in ITM Communications Ltd. (ITM) a network connectivity and IT Managed Services provider, based in Milton Keynes. ITM works throughout the UK, servicing a customer base including blue-chip private companies and major public sector bodies.
This investment establishes a third platform business in Aliter’s recently raised £134m second fund, Aliter Capital II, completed in December 2022.
The current ITM management team, Mike Jackson, Mark Barber and Lynda Ayris, led an MBO of the business in 2010, and they are remaining with the business, following the acquisition. ITM employs 85 employees with robust levels of growth during the last few years.
ITM director Mark Barber said: “We have been aware of Aliter for some time and having seen what they achieved historically with North, a business operating in sectors similar to ITM, we believe strongly the added support of the right investment partner with significant experience and resources will help us accelerate the next stage of ITM’s development. It’s an exciting prospect and we are enthused by the opportunities this will bring to our customers, suppliers and staff.”
Aliter partner Greig Brown, who has joined the ITM board as a non-executive director, said: “ITM is a great example of the type of business we are looking to back, where we can use our sector expertise to support future growth. We have a strong track record in this sector and see clear potential to grow this business, both organically and through bolt-on acquisitions. We are delighted to complete this investment and look forward to working with Mark and the ITM team.”
This latest deal is consistent with Aliter’s strategic focus on using its deep industrial expertise and broad networks to help drive both organic and acquisitive growth, to gain scale and a national footprint. Aliter will be actively looking to acquire complementary businesses as bolt-ons for this ITM led platform.
ITM was founded in 2011 by Mike Jackson, Mark Barber and Lynda Ayris, growing organically since inception. The company specialises in supporting ICT infrastructure, with expert capabilities in five key areas – cabled & wireless connectivity, physical infrastructure, converged IP, offsite staging and logistics and site technical services.www.itm.uk.com
Aliter was founded by a group of seasoned support services entrepreneurs and investors – Billy Allan, Greig Brown, Andy Galloway and Andrew Busby – and focuses on small and mid-sized businesses in the UK support services sector, a market valued at over £300 billion. Its approach differs from traditional private equity models by making only a limited number of selective portfolio investments to deliver dedicated hands-on support. Aliter has now closed a total of 22 transactions since the beginning of 2017 (across Fund I and Fund II). www.alitercap.com
Further details on the recently completed Aliter Capital Fund II can be found at https://www.alitercap.com/post/aliter-completes-fundraising-and-launches-134m-fund-targeting-uk-support-services-sector
North, a networking and connectivity provider, was acquired by Aliter in 2018. Four acquisitions over the next three years saw North’s workforce grow to 265, with revenues of £45m. Aliter agreed the sale of North in 2021.