NVM Private Equity (NVM) has invested £6.4 million to support the management buy-out of IT inventory management specialist, Acal Enterprise Solutions (AES), from Acal plc. As an independent business, AES will aim to capitalise on the forecast growth in demand for server, storage and networking requirements by extending its range of products and services; and widening its customer base across Europe.
Nottingham based AES has evolved from a simple parts reseller to a market leading technical specialist, providing outsourced inventory management solutions to IT maintenance companies and Original Equipment Manufacturers (OEMs) servicing the enterprise server, storage and networking market.
Shaun Lynn (MD) has led the business since 2010, and during this time he has successfully re-positioned the company’s service offering to meet the growth in demand from Service Providers and OEMs. These leading IT specialists consider AES as a trusted partner and recognise its ability to reduce costs, increase operational efficiency, improve service levels and limit the risks associated with inventory management.
AES currently provide specialist inventory management solutions to over 1,700 end customers in over 5,000 separate locations across 25 countries throughout Europe. The business has established long-term recurring contracts for the provision of flexible and scalable managed inventory solutions to large blue chip customers such as Comms-Care, SCC, Bull, Oracle and IBM.
The business has made significant progress in recent years on the back of a burgeoning market driven by the rapid growth in online data requirements worldwide. This continues to fuel the demand for more powerful storage solutions, and AES plans to capitalise on this opportunity by attracting new customers and additional channel partners.
Shaun Lynn, Managing Director of Acal Enterprise Solutions, comments:
“A business’s inventory is one of its major assets, representing an investment that’s tied up until the item is sold or used in production. We help businesses to avoid the significant financial and service delivery risks that are associated with inventory management. With the support of NVM, we intend to build on the success enjoyed with existing key clients and target mid-market Service Providers to increase our customer base and European presence.”
Peter Hodson, Director of NVM Private Equity, comments:
“AES is one of the leading providers of managed inventory solutions in a relatively immature market. Shaun and the team have built the business organically by challenging conventional thinking within their market place. They’ve made strategic investments to improve their solutions and are heavily customer and quality focused – giving them a distinct competitive advantage. We’re excited to be a part of a highly profitable business that’s taking advantage of the global growth in digital trade.”
Notes To Editors
Aon (Insurance due-diligence) – John Donald
Armstrong (Commercial due-diligence) – Tom Raymond, Edward Hikmet, Ian Pawson
Baker Tilly (Financial due-diligence) – Paul Johnson, Kerry Lane, Adam Foster, Suki Kaur, Jacky Kinsey
Continuum (Management due-diligence) – Steve Wycherley
HMT LLP (Corporate Finance) – Ian Barton, Adrian Howells
Wragge Lawrence Graham & Co. (Newco lawyers) – Ian Piggin, Gareth Baker, Victoria Hirst, Graham Spalding, Michael Murphy
Acal Enterprise Solutions Limited For over 20 years Acal Enterprise Solutions has been helping the leading OEMs and field service providers extend their service capability and improve service delivery levels to their customer’s. Acal maintains and manages spare parts inventories and delivers complementing technical services across 25 countries and to over 5,000 locations throughout Europe. These services include technical training, technical support and specialist engineering assistance. Acal Enterprise Solutions Limited is based in Nottingham. www.acalenterprisesolutions.com
NVM Private Equity
is independently owned with nearly 30 years’ experience of investing in unquoted UK businesses. NVM is a generalist investor, managing over £290 million of funds, and is differentiated by having executives living and working in regional business communities throughout the UK. NVM seeks investment opportunities in UK businesses which have the right mix of growth potential and market vision. They may be looking to grow organically, acquire another business or secure a management buy-out. Typically, NVM looks to invest between £2 million and £10 million in each transaction. www.nvm.co.uk
For further information please contact: