ProLabs is a leading global supplier of compatible network products. Its components are used in a diverse range of critical networking applications such as delivery of home broadband and in hyper scale data centres.
The global network components market is expanding rapidly as accelerating demand for voice and data services drives the roll-out of faster and higher capacity networks.
From its offices in Cirencester in the UK and Minneapolis in the US, ProLabs serves blue-chip telecoms and financial services businesses in the US, Europe and Asia, differentiating itself from competing brands in areas of product quality, speed of delivery and technical support.
Following investment in new product development capability and supply chain capacity along with expansion of its geographical sales coverage, ProLabs sought a financial partner to support the experienced management team in accelerating its growth plans.
What difference did we make?
We were appointed in 2016 to prepare the business for sale and to find the right financial partner to support the next phase of growth.
Following a comprehensive review of the business, we helped management develop a robust business plan, underpinned by organic growth from new customer wins and a pipeline of acquisition targets in Europe and the US. We carried out detailed assessments of acquisition targets to ensure we presented tangible prospects. In parallel, we managed financial and commercial due diligence and guided management through the dataroom preparation process.
We began initial discussions with a select group of potential investors, presenting them with a deliverable business plan supported by third party due diligence reports.
After soliciting several firm offers and holding initial meetings with the management team, Inflexion Private Equity emerged as the leading candidate and were granted a short period of exclusivity.
The deal represents a significant step for ProLabs. Ultimately, we delivered both a solution that realised value for legacy shareholders and an incentive package for the reinvesting management team tasked with driving ongoing growth. The business is now looking forward to delivering on its plan of becoming the world’s largest compatible network component supplier.