Private equity houses Maven Capital Partners and YFM Equity Partners have invested £12mln to back the management buyout of Indigo Telecom Group.
The package will also fund the buy-and-build strategy of the South Wales-based firm, which designs, installs and maintains telecom networks for customers such as Vodafone (LON:VOD), Sky (LON:SKY) and BT (LON:BT.).
It has already identified a number of bolt-on deals that offer sales and cost synergies.
Led by chief executive Stephen Thompson, Indigo has 85 full time employees and is partnered with around 500 engineers.
This enables the business to provide comprehensive geographical coverage for customers, with minimal ‘time to site’ service levels.
Its reach is impressive as it operates across 20 countries and supports over 10,000 client sites.
Indigo says its growth will be driven by the expansion of fibre networks, the development of multi-media services by broadcasters and telcos as well as the phone companies continuing to invest heavily in infrastructure.
“Indigo is a strong, established player in a growing market and so aligns closely with our investment focus at YFM,” said Colin Granger, investment director at YFM.
“The firm benefits from significant organic growth potential and we are very excited by the acquisition opportunities that currently exist.
“We have been impressed with how Stephen and the team have developed and grown the business historically and look forward to supporting their future plans alongside Maven.”