Inflexion buys minority stake in UKFast

The company's valuation equates to 16.2x its 2018 expected EBITDA of £25m.

Unquote understands that Inflexion bought a 30% stake in the business, while UKFast's founders and management team will retain the remaining majority stake and continue to lead the company.

The GP deployed capital from its dedicated minority investment fund, Partnership Capital. The firm has recently held a £1.3bn final close for its Partnership Capital Fund II, which exceeded its £700m initial target after only four months on the road.

Previous funding
UKFast raised £40m from the Royal Bank of Scotland in April 2016. According to the terms of the deal, £30m was drawn down immediately with the option to take a further £10m in future. 

Company
Founded in 1998 and based in Manchester, UKFast offers cloud and hosting platforms for businesses and government organisations to outsource their critical IT infrastructure. The business has a customer base of 5,500 UK SMEs and 200 mid-sized companies, which are served by UKFast's 350 employees across its Manchester campus, London sales office and data centres.

Unquote understands that UKFast generated EBITDA of £21m from revenues of £47m in 2017 and expects to reach EBITDA of £25m from revenues of £54m in 2018.

People
UKFast – Lawrence Jones (co-founder, CEO).
Inflexion Private Equity – Simon Turner (managing partner).

Advisers
Equity – Addleshaw Goddard (corporate finance); Deloitte (financial due diligence).
Company – GCA Altium (corporate finance).

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• Topics
• UK / Ireland
• Technology
• Expansion
• Inflexion Private Equity
• United Kingdom
• GCA Altium
• Deloitte
• Addleshaw Goddard
• Minority investing