IT downtime costs businesses in the UK an average £3.6m a year, and with the rise of digitalisation, e-commerce and on-demand technology, it is perhaps unsurprising that disconnected businesses quickly become distressed businesses. The need for rigorous and efficient IT systems has never been greater, yet many organisations are still under-prepared for the rapidly changing nature of the digital age.
Supporting start-ups, fast-growing businesses and established corporate organisations with these concerns, InTec specialises in transformative IT consultancy, focusing on the efficient implementation of cloud solutions, Office365 and CRM platforms. Since the company was founded in 2016, its expertise in providing specialist support services for SMEs has given it a strong platform in the evolving digital landscape, responding swiftly to the convergence of mobile, telco and IT technologies.
Recognising a need for digital expertise
InTec’s experienced and entrepreneurial team recognised that the market was under-served by technology solutions providers that could combine traditional telecoms with highly specialised digital solutions. They began to build a network of telecoms partners, enabling them to expand their product and service portfolios, with their first acquisition completed in 2018. Hale Communications became InTec’s first “owned” partners following an investment from Maven Equity Finance via the Northern Powerhouse fund.
Simon Howitt, Intec’s chairman, explains that such partners often recognise the need to broaden their portfolios, but do not always have the resources required to do it themselves. “Our partners can see the sense in being able to leverage InTec’s technical capabilities and work with customers across a broader spectrum than just telecoms,” he says. “They like that they are joining a group where they keep their identities, but gain a clear plan to drive growth.”
In all cases, InTec acquires a controlling interest, but the identity and management team of the partner business remain the same. InTec sees this as an important element in ensuring that customers have trust and confidence in the new, combined offering.
“Simon and his team’s clearly defined acquisition strategy builds on their extensive market experience and desire to work closely with vendors and their customers,” says Ryan Sorby, principal at BOOST&Co. “Their collegiate approach is unique in the market and is an attractive proposition for many telecom companies looking to evolve and provide their customers with a complete ICT offering.”
Ambitious plans for growth
Capitalising on the success of this model, InTec will use the £4m growth loan from BOOST&Co to fund a partnership with the business telecommunication suppliers Vision Corporate Services, as well as continuing to expand its expert network.
“We have two new partnership deals that are due to complete this summer,’ Howitt says. “This funding puts us in a great position to further grow our network of telecom resellers and IT providers through our ambitious acquisition strategy. It’s certainly an exciting time for InTec and our partners.”
The collaborative approach of InTec and its partner businesses embodies the key goals of the Northern Powerhouse proposal – boosting the local economy and local businesses to promote growth across the north. The same rationale underpinned BOOST&Co’s expansion to the region, with the launch of its Manchester office earlier this year. The InTec loan is the private-debt lender’s second investment in the north in two months, with the total funding distributed amounting to almost £30m.
BOOST&Co was advised by FRP Advisory.