Background

Sitec Infrastructure Services Limited (Sitec) is a national project management company providing end-to-end solutions for the UK’s mobile and fixed-line telecommunications infrastructure. The head office of the business is in Cambridge, with strategic supporting operations nationwide.

The company was incorporated in 2007 and, by establishing an industry-wide reputation of offering a high-quality service to a blue chip customer base, had grown to a turnover of more than £16 million, with a workforce of around 150 staff.

Action

Our Corporate Finance team had been Sitec’s retained adviser, preparing the business during the two years leading up to an anticipated transaction. This involved working with the management team to create a robust business plan, and ensuring Sitec was well positioned for a possible deal.

Throughout this period the team provided the shareholders with the various development options for the business. They decided they wanted to find a strategic partner to work with, who could help to unlock the full potential of the company and fund the potential business growth, while realising some capital value personally and continuing as a key part of the business.

Outcome

As mergers and acquisition advisers for the shareholders, the team led on the sale of Sitec Infrastructure Services to WHP Telecoms, who are backed by Equistone Partners Europe. The transaction provides Sitec with the necessary platform to fulfil its potential by being part of a larger group and having access to greater working capital.

The team acted as lead adviser throughout all stages of the confidential sales process to achieve a quick and successful completion, managing all aspects of the transaction efficiently including negotiating a transaction structure and price that aligned the interests of all parties. Alongside the corporate finance advice, the team also provided tax planning and a structure to ensure the most tax-effective solution for all shareholders.