A real sign of green shoots in the economy!
Basingstoke 21st April 2009: 365 iT Plc announces its acquisition of 5i Limited, a leading provider of Unified Communications (UC) solutions, thanks to a £1.15m debt package from The Royal Bank of Scotland (RBS). The purchase of 5i, which was funded by a combination of debt and equity, provides further indication that the end of the financial crisis may be in sight.
The acquisition of 5i was led by 365 iT’s chairman and chief executive, Peter MacLean, who worked closely with a team of specialists at RBS, including the bank’s Structured Debt Solutions team and RBS Invoice Finance, who were able to provide a bespoke finance facility.
Commenting on the acquisition, MacLean said, “Raising the debt finance to complete this acquisition was challenging but as the end result has shown, not impossible. This is a strategic step forward in the evolution of our services portfolio and enables 365 iT to focus on its core strengths as well as the delivery of UC services and solutions to a growing number of UK businesses.”
MacLean continued, “Aside from acquisitions, we are seeking to maintain an organic growth rate in excess of 15 per cent per annum.” And he concluded by saying, “Further acquisitions are likely however, in order to expand both the size and scope of 365 iT’s services portfolio.”
David Hearn, group finance director of 365 iT, said, “Being able to obtain the necessary funding from a leading bank, such as RBS, during these unusually tough times for raising bank finance, demonstrates the support and appetite that RBS has for providing finance solutions to good quality businesses. This is a very positive and encouraging position for 365 iT.”
RBS is committed to supporting SMEs and the Government backed SME Regional Fund, from which this funding derived, has enabled the bank to continue working with customers and local businesses, such as 365 iT, to help them achieve their aspirations. Furthermore, while 5i already banks with RBS, 365 iT has switched its full banking services to RBS.
5i will retain its name and brand and will trade as a wholly owned subsidiary of 365 iT plc.
Notes to the Editor
1. Peter MacLean has previously initiated and led 25 acquisitions and joint ventures; 21 at Guardian iT plc where he was chief executive and now 4 at 365 iT plc.
2. 365 iT plc, formerly known as Impera plc, was founded in 2005 and now employs over 55 people in the UK. Through its wholly owned subsidiaries, 365 iTechnology and 5i, the group provides an extensive range of IT services and solutions that address 9 strategic functional areas in IT operations and management: Virtualisation, Unified Communications, Business Continuity, Data Backup, IT Security, Storage Solutions, Networking, Infrastructure, and Managed IT Services.
3. Corporate finance advisers to 5i were Nortons Corporate Finance.
4. Legal advisers to 365 iT were Moore Blatch.
5. Legal advisers to 5i were Dutton Gregory
6. Legal advisers to RBS were Herrington Carmichael
7. Financial due diligence was conducted on behalf of 365 iT by Moore Stephens.
8. The Royal Bank of Scotland Group:
NatWest and RBS are the leading bank for SMEs providing banking services to over 1.2 million SME customers. We are very much open for business and have increased our lending to business and commercial customers by 10% in 2008
To help our customers overcome the challenges of trading in an economic downturn we made £3bn of additional lending available to SMEs, up to 1 million small businesses will benefit from the Bank's unique overdraft commitments on price and availability.
Extensive geographical reach across Britain through our network of 3,800 relationship managers based at our 2,279 branches and 118 business centres.
Tel: +44 (0) 7747 100000
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