Catalyst advises MML Partners on investment in IT managed service provider CSI

Catalyst Corporate Finance has advised MML Partners on its £36 million investment in CSI, a leading IT Managed Service provider to the attractive and fast growing UK mid-market.

CSI provides mission critical Managed Services to mid to large sized corporates with complex IT requirements, delivering solutions which combine deep expertise across Infrastructure, Applications and Cyber Security. This enables it to manage, improve and secure core IT systems that sit at the heart of its clients' operations.  The business benefits from an attractive client base that generates strong quality of earnings from multi-year contracts and high cash conversion.

MML is investing alongside IT Industry veterans Alan Watkins and Kevin Lewis who, through their investment vehicle Blackhawk Capital, acquired CSI in 2012. Over the last five years they have grown CSI through a combination of acquisitions and significant organic growth. The business has strong visibility over its FY17B of £48 million revenue and £9 million EBITDA. CSI has developed and acquired highly technical skillsets across a wide variety of technologies, in particular with market leading expertise in SAP and IBM. 

Catalyst played a key role in delivering debt and buy-side advisory for MML ensuring successful execution of the deal. Catalyst’s team included Partners Andrew Shellard and Jamie Hope and Directors Guy Taylor and Emmet Keating.

Jamie Hope, partner at Catalyst Corporate Finance who led the deal supported by Guy Taylor, director commented: “CSI operates in a fast-growing sector and has a strong position within the outsourced IT services space.  We are delighted to have advised MML on its investment in this business which has a very strong platform for future growth.”

Rob Devonshire, MML Director, comments: ''We are extremely pleased to be partnering with Alan, Kevin and the management team at such an exciting time for CSI.  The growth opportunity is significant with the ongoing trend towards outsourced IT Managed Services and cloud based solutions. CSI’s combined skillset across Infrastructure, Applications and Security provides for a highly differentiated offering. This, alongside its substantial client base positions the business well to capitalise on the market opportunity.’’ 

Alan Watkins, Executive Chairman of CSI, comments: “Over the course of the last five months we have got to know MML very well.  Kevin and I have every confidence that they will be a great partner for CSI as we enter the next chapter of the story.  They have done everything that they said they would do, demonstrated real commitment and our trust and confidence has grown about the partnership we are about to embark upon.” 

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