Close Brothers Corporate Finance is pleased to announce the £53 million recommended cash offer for Compel Group PLC ("Compel") by 2e2, a Duke Street Capital portfolio company. Close Brothers Corporate Finance introduced 2e2 to Compel and advised Compel on the transaction.
Background
• Compel is a well established UK-based IT solutions business, comprising two principal businesses; Enterprise Solutions (sophisticated, complex and large scale IT solutions) and Short Term IT Rental Solutions
• 2e2 provides innovative, value-accretive and high-quality managed services to public bodies and corporates across all industries mainly in the UK and the Netherlands. 2e2 was founded in 2002 and has grown both organically and through acquisitions
Process & outcome
• In September 2006 Duke Street Capital invested in 2e2 with the vision of backing 2e2's ambitious expansion plans
• This is 2e2's largest acquisition to date and creates a combined group with annualised revenues of around £250 million
Testimonial
Commenting on Close Brothers Corporate Finance's role, Neville Davis, Chief Executive of Compel, said:
"Close Brothers Corporate Finance's role as financial adviser to Compel has been invaluable. Over the years Compel has consistently enjoyed prompt senior level attention and advice from Close Brothers Corporate Finance , and when it came to exploring a transaction, the team's knowledge of the international IT services universe gave us insight and top level access to the relevant players and their strategies. Close Brothers Corporate Finance was first to see the fit between Compel and the eventual purchaser, introducing 2e2 to Compel, and by anticipating the issues before they arose, played a pivotal part in bringing about a smooth and successful execution of the deal."
Commenting on the transaction, Simon Willis, a Managing Director at Close Brothers Corporate Finance, said:
"This is a great deal for all of Compel's stakeholders as well as for 2e2. Its service offerings and customer base will strengthen and complement 2e2's competitive positioning and it will become an important part of the enlarged company. This will help generate the critical mass necessary for the combined company to continue its onward expansion and play a key part in the consolidation of the IT services sector."
For more information regarding the transaction, please contact Simon Willis or James Craven on +44 (0)20 7655 3100.