IT group Exsel has capital in sights after funds deal

IT and communications company Exsel Group is targeting expansion in Edinburgh after attracting £500,000 in financial backing.

Coralinn's Hugh Stewart becomes chairman of Exsel following the deal. Picture: Contributed

The investment from Livingston-headquartered private equity outfit Coralinn will help secure some 50 jobs in Glasgow and Aberdeen and allow plans for further growth in the Scottish capital to push ahead.

Exsel, which is headquartered at CityPark in Glasgow, has been ranked as one of the fastest-growing technology companies in the UK and serves clients including the Institute of Chartered Accountants Scotland (Icas), Muir Construction, Scottish Futures Trust and Celtic FC.

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Hugh Stewart, the Scots entrepreneur who helped establish Coralinn, said the firm had taken a 45 per cent stake in Exsel because it was a dynamic young company which fitted the portfolio profile for Coralinn’s investments.

Two years ago, the IT business employed just three people and had a turnover of £100,000. That rose to £2.7 million in the financial year to last March and is expected to reach more than £4m next month.

Exsel managing director Tom McDonald said: “We are absolutely delighted to have secured this investment from Coralinn. As two strong Scottish businesses, it will be exciting to see what we can do together and where this investment will elevate us.”

Stewart, who becomes Exsel’s chairman, said: “With this investment and support we believe Exsel will continue to be one of the fastest growing IT and communications companies in Scotland.”