Motherwell IT firm VectorCloud has deals on radar after funding boost

A Motherwell IT services business is pursuing significant expansion, including more acquisitions, after a funding boost from stakeholder UKSE, which supports businesses and communities affected by changes in the steel industry.

VectorCloud, which specialises in managed IT services, including business continuity, information security, IT disaster recovery and "fully responsive” cloud systems, has used the six-figure investment to acquire the IT service division of another local business, boosting its client base.

It added that the firms that will now be supplied by VectorCloud will also benefit from having a specialist IT provider offering a full suite of products and services.

From left: VectorCloud's Kevin Mitchell with UKSE's Terry Quinn. Picture: contributed.

The company was established in 1997, has nine staff, and says it is one of Scotland’s leading IT services organisations, working with small and medium-sized enterprises in a range of sectors, including financial services, manufacturing, retail, healthcare and business services. It also has customers in transport, telecommunications and utilities.

UKSE, a subsidiary of Tata Steel, has a 10 per cent equity stake in the business and in 2019 provided it with funding to undertake a management buyout.

Kevin Mitchell, co-owner at the IT firm, said it has a “strong” track record of innovation, which more recently “has been used to build a new strategy of growth following the pandemic, which will see VectorCloud target even more new customers through future acquisitions”.

He added: “With UKSE’s support, we have completed our first acquisition and are the strongest we have ever been.”

Terry Quinn, UKSE regional executive, said: “VectorCloud is an ambitious, well-managed business in a key sector for the Scottish economy. We’re proud to help it progress and expand.”

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