Advised Control Circle, a leading UK-based provider of complex managed hosting and cloud-based services, on its sale to Alternative Networks
Jan 2014
acquired by
  • Sector: Communication Services
  • Deal Type: Strategic Deals; Venture Capital Exits
  • Engagement type: Sellside
  • Size: <$200m
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Arma Partners is pleased to announce that it has acted as exclusive financial adviser to the founders and management of Control Circle Ltd (“Control Circle”) and Scottish Equity Partners LLP (“SEP”) on the sale of Control Circle to Alternative Networks plc. (“Alternative Networks”).

Arma Partners assisted the management and owners of Control Circle to realise their strategic objectives, drawing on our extensive experience in the European hosting space. This transaction demonstrates the growing interest in the European market for complex managed hosting and cloud-based companies, which benefit from strong growth and high quality recurring revenues, and further illustrates Arma Partners’ leadership in European hosting and data centre M&A.

Founded in 2001 and backed by SEP, Control Circle is a UK-based provider of complex managed hosting and cloud-based services to enterprises and on-line businesses, including Saga, Rightmove and RR Donnelley. www.controlcircle.com

– Control Circle is a UK-based provider of complex managed hosting and cloud-based services

– Designs, deploys and manages mission critical IT services through a broad portfolio of services including managed hosting, managed applications and cloud & virtualization services

– c.60 customers including large enterprises (Chubb Insurance, KPMG, RR Donnelley and Saga) and high profile on-line businesses (Monitise, Rightmove, and Wiggle)

– Founded in 2001 and backed by SEP in 2010

– Alternative Networks designs, implements and manages communications and technology infrastructure for private and public sector businesses throughout the UK

– Provides voice, mobile, unified communications & collaboration, infrastructure solutions, cloud computing and virtualization, data and security services to over 5,000 customers

– Alternative Networks is listed on the AIM market of the London Stock Exchange

– Control Circle offers the delivery of complex managed hosting, cloud and datacentre services, which is an increasing requisite for Alternative Networks’ existing and targeted UK enterprise clients

– Control Circle’s skills set will complement and bolster Alternative Networks’ existing services in networking and datacentre, such that the enlarged group will now have a comprehensive and compelling data and IT services portfolio including managed and cloud based services, such as managed hosting, datacentre virtualisation and application management

– Alternative Networks and Control Circle have both adopted asset light and customer rich strategies, dedicated to offering flexible data and communications services with a focus on premium service and technical excellence

– Control Circle’s customers are highly complementary with Alternative Networks’ and have a higher penetration in similar industry verticals allowing for significant cross selling opportunities

– Control Circle had received an inbound expression of interest that triggered the process, and Arma was engaged to assist

– Arma contacted the most qualified buyers to determine interest in the business

– In parallel, Arma worked extensively with management to articulate the company’s growth strategy and corresponding financial plan

– Alternative Networks then emerged as the most attractive bidder for the business and Arma, together with the management team, consequently worked towards a very tight and compact timeline to complete the deal

– Overall, Arma Partners assisted the management and owners of Control Circle to realise their strategic objectives, drawing on Arma’s extensive experience in the European hosting space and global cross-border relationships with the most qualified buyers, including Alternative Networks