DCSIMG

SEP doubles its money after IT firm backing

  • by PERRY GOURLEY
 

SCOTTISH Equity Partners (SEP) is thought to have more than doubled its money in less than four years after investing in an IT firm which was yesterday sold in a £39.4 million cash deal.

The Glasgow-based investor had provided £6m funding to Control Circle in 2010 for it to pursue an aggressive global growth strategy in return for a stake thought to be around a third of the company.

Control Circle, which has offices in London and New York, has now been acquired by listed business communications firm Alternative Networks. It is thought SEP will receive around £12.7m for its stake.

Control Circle, which was founded 13 years ago by chief executive Damian Milkins and chief financial officer Simon Hancock, reported £21.1m of revenue in the year ended 30 September 2013 and earnings of £1.9m. In the previous three years, the company had achieved compound annual revenue growth rate of 32 per cent.

The existing management team of Control Circle will continue to run the day-to-day operations of the business.

Edward Spurrier, chief executive of Alternative Networks, said: “We are delighted to have acquired such a complementary business in the managed hosting arena. We intend to invest in the growth of Control Circle and are confident that combining their services with those of Alternative will provide the group with new and enhanced offerings to its customers.

SEP’s other investments include SkyScanner, the Edinburgh-based flight search site.

 

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