Gresham completes exit from 2e2
Mid-market private equity firm Gresham has made a successful exit from its stake in the IT services provider 2e2.
Gresham announced it has sold the business, which offers IT infrastructure, maintenance, networking, education and other managed services, to Duke Street Capital for £130m, making a return of 3.6 times its original investment.
Gresham originally invested in the business in July 2003, growing 2e2 with nine acquisitions in three years and boosting its revenues from £15m to a forecasted £155m over that time period.
“The team behind 2e2 is outstanding and the business is superbly placed to continue its success with Duke Street Capital as its funding partner,” said Paul Canning, director at Gresham. “We have been delighted with our investment in 2e2.”
The business was established in 2002 by chief executive Terry Burt and chief operating officer Mark McVeigh and today has over 1,200 employees.
Gresham said the company’s existing management team will remain intact.
The firm’s sale of 2e2 is the latest in a series of exits for Gresham, which have included the sale of Alstec to Babcock International Group Plc, the sale of Altair to GE Energy and the sale of ANSA to Mavinwood Plc.
© Crimson Business Ltd. 2006