Kartesia provides £30m credit facility to Kerv
Kartesia, the European specialist provider of capital solutions for small and mid-sized companies, is pleased to announce the completion of a deal to provide a £30m senior loan facility to leading pan-European cloud services business, Kerv. The capital will be used in part to support their acquisition of digital transformation business cloudThing, Kerv’s fifth deal in the past ten months and its largest to date in terms of value.
Following the acquisition, the combined group is now a £35m revenue business with more than 330 employees, serving over 800 customers, with offices in London, Birmingham, and Bangalore, India. Whilst continuing its focus on strong and sustainable organic growth, Kerv will also look at acquiring businesses which add new capabilities to further enhance its cloud and digital credentials and/or bring new vertical opportunities.
The proceeds of the loan facility will be used to finance the acquisition of cloudThing and support Kerv’s ongoing buy-and-build strategy, as well as refinancing some of its existing debt arrangements. This is the second deal in the cloud-centric services sector to be announced in the UK from the Kartesia Senior Opportunities I fund (KSO 1). In August, Kartesia provided a €29m senior loan facility to leading pan-European cloud telecommunications provider, Firstcom Europe.
The deal team at Kartesia comprised Jaime Prieto, Nick Holman and Sebastian Afflerbach.
Nick Holman, Director at Kartesia, said: “We are pleased to support the Kerv Management in completing this transformational acquisition. The solution offering of cloudThing is highly complementary and will add important software development capabilities to the group. The combined entity will have a comprehensive IT solution offering for mid-market customer with complex needs and is very well positioned to support its customers in the accelerated shift to cloud computing. The cloud-centric services market is one we are familiar with through previous transactions, particularly last year’s investment in Firstcom Europe, and we look forward to bringing this experience to bear as Kerv pursues its buy-and-build growth strategy.”
Mike Ing, Managing Director at Kerv commented that whilst this transaction represents the company’s fifth deal in less than a year, the focus remains firmly on delivering sustainable organic growth: “Over the years we have seen many companies in our space grow rapidly through acquisition, only to be followed by aggressive centralisation and cost-cutting and eventually, any organic growth evaporates. Our strategy is different. We are firmly focussed on delivering sector-leading organic growth by embracing the character of each complementary business within the group, ensuring we continue to focus on what has made them a success whilst leveraging our respective strengths. The combination with cloudThing is a great example of our approach.”