Bristol law firms Bond Pearce and Thrings and the local office of accountants Grant Thornton have advised on a seven-figure funding package with HSBC Commercial Bank to finance a management buy-out (MBO) at Swindon-based IT communications company Excalibur.
HSBC’s Wiltshire commercial team provided the finance package, which includes extended working capital facilities to sup
port its growth plans. Excalibur moved its full business banking to HSBC last year in a deal led by senior international commercial manager Gary Mealing. The package will also allow Excalibur, which employs more than 60 people in its Swindon headquarters and across offices in Chertsey and Basildon, to create a further 20 jobs.
The firm provides mobile communication, telecoms and IT services to more than 5,000 businesses across the UK.
Grant Thornton partner Mark Taylor added: “We are delighted that we played a part in the MBO, which is an important next step in the development of the business. The opportunities for the business are significant and we look forward to seeing the management team take advantage of those opportunities.”
Thrings’ team was led by head of South West corporate John Davies, assisted by Simon Hore.
Mr Davies said: “Thanks to the prompt and commercial instructions we received from James and his team, we were able to meet the tight timescale for completion of the MBO of this dynamic and successful business. I would like to wish James and his team continued success in the future.”
Under the MBO, chief executive officer James Phipps becomes the majority shareholder with an 80% stake in the business. The move is expected to help drive revenues and create jobs at the company as it looks for both organic and acquisition-driven expansion.
James joined Excalibur in 1999 and was appointed managing director in 2010 before becoming chief executive last year. During his time in these senior roles the company has embarked on a significant acquisition programme to drive growth. He said the MBO signalled the company’s ambitions to generate further growth and embrace new trends in the IT industry.
Founding managing director Gary Wetherall is stepping down, although he retains a stake in the business.
James said: “Revenues are up 50% on this time last year but we think there is scope for further growth in this market. I am keen to push the boundaries of this business and to ensure we continue to meet and exceed our customers’ needs and expectations.
“HSBC’s role was critical in this MBO and we see the bank as a valued and long-term partner.”
Mr Mealing added: “We have been impressed by James’s passion and tenacity in driving Excalibur’s growth and it is exactly the type of business that is helping the UK’s economy trade out of these difficult times.”
