Thu, 20 Jun 2024 | BUSINESS NEWS
Communicate, a cyber security and network infrastructure firm based in Teesside, has secured investment from private equity firm Rockpool to enable it to pursue a buy-and-build growth strategy.
The financing will allow the company to target acquisitions of businesses in the IT services sector, building on its three previous acquisitions. Since it was founded in 2011, Communicate has acquired Touchdown Technologies, Landscape Networks and Zencom.
Communicate has its own fibre network infrastructure, along with a dedicated network operations centre in Teesside and an in-house security operations centre in Leeds, which operates 24/7/365.
Founder and CEO Tony Snaith (pictured above) and the executive management team are also re-investing in the company alongside Rockpool. The deal has also seen Roger Flynn appointed as non-executive chairman upon the completion of Rockpool’s investment.
Tony Snaith said that Rockpool was the right partner to enable Communicate to fulfil its ambitions. He continued: "Along with our strong pipeline of organic growth we now have the opportunity to acquire and integrate similar, technically focused companies to expand our footprint even further.”
The investment is Rockpool’s second in the technology sector this year, with the firm have backed the management buyout (MBO) of software testing and quality assurance provider 2i in April. Tom Coey, Investment Director, and Toby Hurdle, Investment Manager, led the deal for Rockpool.
Tom Coey commented: "This investment marks the first step on an exciting buy-and-build journey that we plan to undertake in partnership with Communicate's highly experienced management team. It is very rare that we get the opportunity to back a business that has already sourced, completed and integrated three successful acquisitions to date.”
Rockpool's investment follows a full-market approach carried out by Communicate’s directors, alongside Acuity Advisors.
Marcus Allchurch, Managing Partner at Acuity Advisors, commented: "As the company delivers on its exciting growth plans I am quite certain that the market will see a lot more M&A activity from Communicate over the coming years, and look forward to supporting them with that journey."
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