Summary: UK cloud MSP TIG acquired netConsult, a technology consultancy serving the alternative investment sector. TIG also secured £6m in funding from the UK’s BGF. The BGF funding was agreed to last July, but disclosed now once the netConsult deal had closed.
Details: Based in central London, netConsult was founded in 2002 and serves clients with over $100b in assets under management. It claims to have grown 20% on average every year since its creation. netConsult offers a range of services to regulated companies, spanning infrastructure, the netManage management platform, cybersecurity and governance/compliance. The acquisition doubles TIG’s headcount to 90 and expands TIG’s financial services team, which will be led by netConsult co-founder and CEO Richard McDonald. Terms of the deal were not disclosed.
BGF: Business Growth Fund takes minority stakes in its investments so TIG will benefit from the financial support but retain full control. BGF investor Mark Nunny will join TIG’s board, serving alongside existing NEDs former Pulsant CEO Mark Howling and former Six Degrees CFO Ronnie Smith. This is not BGF’s first investment in the sector. It has backed nearly 70 tech firms since being established in 2011, including UKCloud which provides a somewhat similar set of services as TIG but to the public sector.
Angle: The acquisition deepens TIG’s presence in the financial services sector, already a key focus and growth area for the company, with an expanded customer base and service offering. Notably, TIG believes that whatever Brexit brings, there will be no material change in London’s status as a financial centre. TIG posted strong organic growth for 2017, its first full year since being acquired by former Eurodata founder Des Lekerman, and is looking to accelerate growth through acquisition alongside organic growth. The BGF investment supports that strategy and it is fair to expect further acquisitions will build out TIG capabilities in other key verticals – the company is already in discussions with another potential acquisition target – while potentially consolidating its position with further M&A in the financial services space and building out its cloud capabilities, currently focused around Azure. TIG serves the mid-sized enterprise market with a full range of cloud services, a space with plenty of potential that is just starting the journey to the cloud.
Advisors: TIG was advised by Foote Anstey and Kreston Reeves. BGF was advised by Shoosmiths.
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