
Horizon's Timico buys Arcus Cloud Services
Managed IT service Timico, a portfolio company of Horizon Capital, has acquired Cambridge-based Arcus Cloud Services (ACS).
The acquisition is intended to broaden Timico's service portfolio in the Amazon Web Services segment, according to a statement.
ACS's former parent company, Arcus Global, is backed by YFM Equity Partners, following funding rounds of £3m and £2.5m in 2018 and 2019 respectively.
Arcus said in a statement that the sale of ACS will enable the company to concentrate on its platform-based local and central government software. Arcus Global intends to invest the sale proceeds in research and development, software engineering and customer service programmes.
Horizon Capital (then known as Lyceum Capital) acquired a majority stake in Timico in February 2017 in a deal that saw the company valued at more than £50m. Horizon's Simon Hitchcock and Geoff Neville joined the company as non-executive directors.
Horizon invested in Timico via its third fund, which held a final close in May 2013 on its £330m hard-cap. The vehicle has made 12 platform investments and deploys equity tickets of £5-50m, focusing on UK-based mid-market companies, according to Unquote Data. Debt to support the buyout was provided by Ares and incumbent lender Santander.
Company
Headquartered in Cambridge, Arcus assists organisations with Amazon Web Services cloud projects, offering consultation, design, implementation and support services. The majority of its clients are in the public sector. The company has fewer than 50 employees, according to LinkedIn. Arcus Cloud Services was formerly part of the Arcus Global group, prior to its acquisition by Timico.
People
Horizon Capital – Simon Hitchcock (managing partner).
Timico – Neil Muller (CEO).
Arcus Global – Nick Howe (CEO).
Advisers
Vendor – RPL Mergers (corporate finance); Mishcon De Reya (legal).
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