Investee Company – Echo plc(UK)
Investee Company Business Type – Provides specialist logistics and computer support services
Type of Financing – Management buy-in/buy-out
Equity Providers – ECI Ventures
Equity Leader (Individual) – Ken Lindsey
Debt Providers – N/A
Debt Type – N/A
Debt Leader (Individual) – N/A
Equity Amount – £6.7 million
Total Deal Value – Undisclosed
Other Advisors – KPMG, Burlington Consultants, Osborne Clarke, EMW Law, Barnes Menzies French and Withers
Comments – ECI Ventures has backed the management buy-in/buy-out and expansion of Echo plc. The total deal value was not disclosed. ECI has committed £6.7 million to the deal for the specialist logistics and computer supports services company.
Echo, based in Milton Keynes and Northampton, provides innovative technical and logistics services within the IT, Finance & Retail sectors. Working closely with OEMs and third party suppliers the company operates a team of 300 engineers installing and maintaining computer systems in the UK. The company currently generates profits of £1.4 million on revenues of £15 million.
The management buy-in/buy-out team comprises Richard Underwood, founder of Echo’s systems support business, non-executive director, David Marsland, formerly cheif executive officer of Sunlight Service Group, chief executive and Moray Duguid, non-executive chairman. Ken Lindsey of ECI has joined the board.
Davis Marsland, new chief executive of Echo said: “There is a great opportunity to develop Echo’s IT systems support business. In a market that demands high levels of service quality but with increasingly high levels of efficiency and cost effectiveness, Echo’s combination of logistics and technical skills is very powerful. It lets us offer a better, faster, more flexible and significantly cheaper service that a traditional support operation.”
Ken Lindsey, Investment Director at ECI Ventures added: “We see attractive opportunities to expand Echo’s technical capabilities further through selective acquisitions of other IT maintenance businesses that can benefit from Echo’s experience.”
Further investment by ECI is expected over the next 2-3 years to fund acquisitions.