MBO of Smart Capital Technology

HMT LLP advised the shareholders of Thames Valley based IT services provider Smart Capital Technology (“SCT”) on their sale to management. Private equity firm WestBridge invested £17m to support the MBO and Shawbrook Bank provided the debt facilities.

Established in 2002 and headquartered near Reading, SCT is an innovative IT services organisation, which is 100% dedicated to the channel. SCT’s flagship Inventory-as-a-Service (IaaS) solution offers technology infrastructure support on a global basis through a comprehensive IT engineering capability and operational network.

The company has a reputation for service excellence with its mission critical offering being highly regarded by its blue-chip client base.

The MBO was led by CEO, Andy Morgan with support from the wider management team. The deal facilitates an exit for the founding shareholders, Greg Stone and Russell Barley, who will retain a small shareholding in the business.

The SCT team will be augmented with the appointment of non-executive chairman Richard Cottrell, who brings extensive sector experience and will provide invaluable guidance and support in delivering SCT’s strategic objectives.

HMT acted as lead advisors on the transaction which included assessing the strategic options for the shareholders and management, identifying suitable investment partners, negotiating detailed exit and investment terms, supporting the business through an extensive due diligence process and project managing the deal to a successful completion.

Greg Stone, Shareholder of SCT commented:

“As the shareholders of SCT Russell and I have been delighted with HMT’s advice, direction and overall professionalism in securing the sale of SCT to WestBridge. Throughout the process of building the IM, finding the interested parties and guiding us through the selection to negotiating the SPA, Wendy and Ricky provided sound invaluable commercial guidance with realism, always in our best interests. We would wholeheartedly recommend HMT to any prospective business sellers.”

Wendy Hart commented:

“The sale of SCT to its management team, backed by WestBridge, has delivered a great result for the exiting shareholders, management, and the business itself. Greg and Russell have built a fabulous platform for further growth and hand SCT over with a strong pipeline of opportunities. We have thoroughly enjoyed working with them over the last many months, and with Andy, WestBridge and the other advisers on the deal. We have no doubt that SCT will go from strength to strength.”



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