BGF exits Vysiion for 3x return

Katharine Hidalgo
04 March 2020

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BGF has sold its minority stake in IT services provider Vysiion Group.

The firm is expected to generate a return of around 3x money from the sale, for an IRR of around 25%.

The exit follows the sale of BGF's minority stake in Miss Group for an IRR of more than 100% in February 2020.

James Austin, an investor at BGF, said: "Vysiion's successful journey required several shifts in strategic direction since our investment, due to major changes in the operation of its end markets."

He continued: "BGF is a provider of flexible and patient capital. We helped Bruce Brain and his team to rapidly adapt to changing conditions in a supportive manner. It was a productive and enjoyable partnership and we look forward to seeing Vysiion's continued growth under new ownership."

Exponential-e, a cloud, network and unified communications provider, has wholly acquired the company. The two companies will integrate their respective portfolios following the acquisition, although Vysiion will retain its brand. The combined company will employ 700 people.

Previous funding
BGF backed Vysiion in March 2015, with a £4m investment that funded the company's acquisitions of Zantra Technology and Solutions 4 Business. BGF provided no further investment throughout its holding period.

Company
Founded in 1971, Wiltshire-based Vysiion offers products and services surrounding IT infrastructure to clients in sectors such as utilities, defence, central and local government, and emergency services. It employs 120 people.

The company reported EBITDA of £1.26 from revenue of £19m for the year ending on 30 June 2019. It reported EBITDA of £219,760 from revenue of £12.8m for the previous year.

People
BGF – James Austin (investor).
Exponential-e – Lee Wade (CEO).
Vysiion Group – Bruce Brain (chair).

Advisers
Vendor – Isca Ventures (corporate finance); Crowe (financial due diligence); Roxborough Milkins (legal).