Macquarie buys Wavenet from Beech Tree

Alessia Argentieri
20 May 2021

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Macquarie Capital has acquired communications service Wavenet from Beech Tree Private Equity.

Following the acquisition, Macquarie intends to boost the company's growth, scale up its team and provide a renewed focus on strategic acquisitions.

In September 2020, Beech Tree hired Oakley Advisory to manage the sale of Wavenet, valuing the business at a two-digit multiple of its £10m EBITDA, according to press reports.

The sale ends a five-year holding period for Beech Tree, which backed Wavenet's £35m management buyout. The Royal Bank of Scotland (RBS) provided a debt package to support the deal. As part of the MBO, Beech Tree founding partner Paul Franks and investor Adam Rudd took a seat on the company's board.

The company completed an €85m refinancing in 2018, with Ares Management providing a unitranche facility and RBS a super-senior revolving credit facility.

Under Beech Tree's ownership, Wavenet increased its turnover from £14m in 2016 to £60m in 2021 through a mixture of acquisitions and organic growth. The company completed eight add-ons, targeted at augmenting its portfolio, expanding its technical staff and broadening its presence across the UK.

Company
Founded in 2000, Wavenet provides communications services, – including data, contact centres, IT networks, internet, fixed-line and mobile telephone networks – to SMEs across the UK.

Wavenet is headquartered in Solihull, with further offices in Chester, Norwich, Cardiff, St Albans and Nottingham.

Employing 200 staff, the business serves a client base composed of around 8,000 companies and enterprises, and generates annual revenues of £60m.

People
Macquarie Capital Principal Finance Europe – Adam Joseph (head of private equity).
Beech Tree Private Equity – Paul Franks (managing partner).
Wavenet – Bill Dawson (CEO).

Advisers
Vendors – Oakley Advisory (corporate finance); Eversheds (legal).