Clearwater UK advises BCN Group on its sale to Beech Tree Private Equity

Transaction

BCN Group sold to Beech Tree Private Equity

Sell-side

Undisclosed

Role

Adviser to BCN Group on its sale to Beech Tree Private Equity

Sector

Tech & Tech Services

Region

United Kingdom

Clearwater UK has advised BCN Group (BCN), a leading provider of cloud IT managed services, on its investment from Beech Tree Private Equity (Beech Tree). The investment will be used to accelerate the growth of BCN both organically and through pursuing an acquisition strategy.

Formed in 2009 by entrepreneurs Simon Kelf and Matt Smith, BCN offers a full range of IT managed services to support UK businesses. It provides on-premises, hybrid and cloud hosting solutions, cloud migration services, application support, voice solutions, data management, hardware sales and maintenance services to over 300 clients. BCN has a strong focus on technical knowledge and customer services, which has led to BCN’s sector leading Net Promoter Score (NPS) of 89. The NPS is an index ranging from -100 to 100 that measures the willingness of customers to recommend a company’s products or services to others. The business has built an end-to-end, scalable management platform and ERP (Enterprise Resource Planning) system, which automates tasks and manages customer interactions, ticketing and engineering workflows efficiency.

Beech Tree has been looking to invest in the sector due to the rapid growth in demand for the provision of cloud managed services, and will support BCN with its plans to scale up in this highly fragmented market.

The Clearwater team did a great job of supporting us through the sales process. Their sector expertise, strong relationships with private equity, and determination to get the deal done meant that they delivered an excellent result for us. I would not think twice about working with them again.
Simon Kelf, CEO at BCN

BCN is a standout performer in its market place, evidenced by best-in-class client satisfaction ratings, with impressive growth in recent years. The management team’s ambitious growth plans, for this agile and innovative company, align with Beech Tree’s interest in the sector and we look forward to seeing the business develop.
Carl Houghton, Partner and Head of TMT at Clearwater

We are delighted to invest in BCN. There are several growth drivers impacting this sector and it is clear to us that BCN is well set to benefit from these over the next five years. After meeting many businesses in the space, we were really impressed with BCN. We believe the ambition held by the management team, the sales and customer centric culture and most importantly, the technical knowledge held within the business sets BCN apart from its competition. We are excited to support the management team in pursuing a buy and build strategy – this is an area in which we have a lot of experience in, having helped many of our other invested businesses to pursue similar strategies.
Adam Rudd, Director at Beech Tree Private Equity