Kartesia continues UK Teck investment with support for acquisition of Digital Space

Kartesia, the European specialist provider of capital solutions for small and mid-sized companies, has provided a Unitranche facility and additional committed facilities to support leading UK mid-market private equity specialist, Graphite Capital’s, acquisition of Digital Space.

Digital Space is an IT-managed services provider for corporate and public sector clients, employing around 340 staff in offices across Newark-on-Trent, Telford, and London. It provides clients with a single, integrated managed IT service covering secure connectivity and communications, managed hybrid infrastructure, and cyber security. The company has around 5,700 customers, which it works with to improve its operational workflow and accelerate growth through digital transformation.

In the year to December 2021, Digital Space generated revenues of £57.4 million and under the leadership of chief executive Neil Muller, the group is set for strong expansion, building on the success of its strategic acquisitions and organic growth momentum. The IT managed services addressable market is estimated to be £58 billion, with the areas Digital Space serves forecast to grow at 10 percent a year for the next five years.

The capital for the transaction was drawn from Kartesia’s Senior Opportunities II (KSO II) fund and the team consisted of Nick Holman, George Simpson, and Serafina Di Felice.

Nick Holman, Director at Kartesia, said: “Digital Space has proven itself as a strong platform for growth with high profile customer wins through its market-leading full-suite connectivity and IT managed services offering focused on an underserved market segment. Coupled with the positive outlook for the sector and an accomplished senior management team, we are delighted to be supporting Graphite Capital as Digital Space looks to continue to deliver growth in its core offerings supplemented with exciting opportunities through market consolidation.”