Award-winning supplier of network and cyber security solutions sold to leading managed IT services provider
Cavendish Corporate Finance (“Cavendish”), part of finnCap Group plc, has today announced that it has closed a deal for the sale of Datrix Limited (“Datrix”), a well-established supplier of cloud-based networking, communications, and cyber security solutions, to AdEPT Technology Group plc (“AdEPT”), one of the UK’s leading independent providers of managed services for IT, connectivity, unified communications solutions, and cloud services.
Based in London since 1994, Datrix boasts considerable expertise in the growing market for Software Defined Wide Area Networking (“SD-WAN”), having designed, delivered, and managed end-to-end enterprise solutions for a number of multisite, mission-critical environments. With 63% of total revenue generated from public sector clients, Datrix’s strong customer base includes NHS Trusts, care homes, local authorities, and universities, as well as energy companies, law firms, and construction companies.
Demand for Datrix’s unified, secure cloud-based network and communication solutions has been accelerated by the changes to working lifestyles driven by the pandemic, and this demand continues to grow in both the public and the private sector. Datrix is well-positioned to benefit from this increased demand. This background makes the acquisition of Datrix a strategically important one for AdEPT, enhancing the Group’s capabilities and increasing its market share in a key cloud-centric growth market and in complementary verticals.
Datrix has been capably managed by a highly competent Executive Management Team, who between them boast more than 70 years of experience in leadership roles within the sector. Key management figures have been retained in their current capacity, with a clear focus on expanding AdEPT’s presence in the advanced cloud-centric networking space. Current Datrix Managing Director Mark Thomas will lead Datrix under AdEPT’s ownership, reporting directly to AdEPT CEO Phil Race. Exiting Datrix CEO Mahmood Chaudhri will be retained in a consultancy role during the earn-out period.
Anthony Platt, Partner at Cavendish Corporate Finance, comments: “We are extremely pleased to have played a role in this strategically important acquisition in an exciting market. This deal provides AdEPT with instant scale, expanding the Group’s portfolio in increasingly important secure cloud technology, SD-WAN, and related cyber security products. Datrix fulfils all the criteria of AdEPT’s growth strategy, and its strong customer base is well-aligned with AdEPT’s vertical market focus.”
Mark Thomas, Managing Director of Datrix, comments: “We are delighted to become part of the AdEPT Technology Group. From the outset, it was clear that the solution set we take to market is complementary to AdEPT’s, and that the combination of AdEPT and Datrix expertise will bring benefits to both parties, and crucially to our customers. Our joint presence in the NHS will undoubtedly create new opportunities and being part of a larger group will help us capitalise on the growing and substantial market for advanced cloud-centric networks and cyber security.”
About finnCap Group
finnCap provides an unrivalled range of financial services and growth financing options to the UK’s most ambitious growth companies, ranging from ECM, IPO, debt advisory and PLC strategic advisory. finnCap also houses a market-leading strategic M&A firm, Cavendish Corporate Finance, that specialises in mid-sized businesses with a global reach. finnCap serves 127 companies on AIM and on the LSE Main Board, as well as a range of private businesses, helping them find the right investment for growth. Founded in 2007, finnCap merged with Cavendish Corporate Finance and listed on the AIM market in 2018, and the group has helped raise over £2.8bn to support its corporate clients and sold over 600 businesses. finnCap is the largest Nomad and AIM company financial adviser and No.1 broker on AIM, and has a global reach through its membership of Oaklins, with 60 offices in 45 countries, including key M&A markets in the UK, Asia and Europe. For more information, visit: https://www.finncap.com
AdEPT Technology Group plc is one of the UK’s leading independent providers of managed services for IT, unified communications, connectivity and voice solutions. AdEPT’s tailored services are used by thousands of customers across the UK and are brough together through the strategic relationships with tier-1 suppliers such as Openreach, BT Wholesale, Virgin Media, Avaya, Dell and Apple.
AdEPT is quoted on AIM, operated by the London Stock Exchange (Ticker: ADT). For further information please visit: www.adept.co.uk.
For further information about Datrix: https://www.datrix.co.uk/
About SD-WAN – advanced cloud-based networking
Networks were historically designed to support a collection of locations, joined by fixed connections, where the locations held both users and their data, all within a firework to protect information.
This has changed dramatically in recent years, accelerated by the pandemic, with users requiring remote access to systems from any location. Information needs to pass via the unpredictable internet, and via owned and managed networks. Data sets can be substantial, and security and performance challenges are exacerbated by the remote nature of users, who may not be ‘living’ within a firewall. Furthermore, applications can reside either within a company network or hosted virtually in the Cloud.
This new world needs to connect groups of users securely, in a resilient and highly performant way, to their applications, and their data – all in a flexible manner which can be changed readily.
Enter the new world of SD-WAN and Secure Access Service Edge technology (SASE), encompassing the latest technologies and advanced services, which allow networks and their security to be controlled, managed, adapted, and monitored, through software, in a cost-effective way.