Business advisory firm Quantuma acted as exclusive lead adviser on the management buyout of Phoenix Datacom, backed by private equity giant LDC.

Established in 1984, Phoenix Datacom is a data and network security specialist based in Buckinghamshire which helps organisations to build, validate and optimise their networks and secure business critical assets.

The company has built a strong customer base over the years, working with a range of financial institutions, network operators, media businesses, broadcasters and public sector organisations across the UK. In the year ending 31 March 2020, the business reported revenues of more than £20 million – an increase of 48 per cent over the past three years.

The buyout will see LDC support the business’ existing management team – led by CEO, John Carson – to expand its suite of hardware and software products. LDC’s backing will also help Phoenix Datacom to explore complementary acquisitions.

Quantuma, led by Ian Barton, Adrian Howells, and Reuben Taylor, supported Phoenix Datacom’s management team in developing its business plan, securing investment from LDC, and structuring and delivering the deal for all parties.

The deal will also see former UK President of BT Global Services and CEO of Alternative Networks, Mark Quartermaine, join as non-executive chairman. Financial details of the investment are undisclosed.

Chris Morris, Investment Director at LDC said:

“The team at Phoenix Datacom has a 30-year track record of providing secure data network solutions to a blue-chip client base. This is even more impressive considering how the market’s complex landscape continues to evolve and customers need for the latest capabilities as network performance and security become ever more important. We look forward to partnering with John and the team to support the next stage of their growth journey.”

John Carson, CEO of Phoenix Datacom added:

“Throughout the transaction, we really benefited from Quantuma’s extensive experience and fast responses. Working with Ian and Adrian was an absolute pleasure – their pragmatic approach and very positive attitude to keep our deal on track was particularly beneficial. This is especially the case given with the challenge of not being able to meet face-to-face for most of the deal due to lockdown, and their support, friendship and professionalism were key to delivering a successful outcome.”

Ian Barton, managing director at Quantuma who lead the transaction, commented:

“Doing a deal in lockdown is a new skill learned by all advisers and clients over the last 12 months. The successful completion of the Phoenix Datacom deal is testament to both John and his team’s resilience and drive to continue to grow the business at the same time as executing this deal. Working with LDC over an extended period on this deal, as well as all the other advisers showed the pragmatism and strength of deal doing capabilities in the Thames Valley.

We are delighted to have supported Phoenix Datacom, LDC, John and the team throughout the buyout and look forward to seeing the business grow further in the years to come.

This deal follows a significantly active period for the Quantuma corporate finance team, completing eight transactions in the last fortnight, at a combined value of over £130m.

ENDS

Notes to Editors Quantuma is a leading business advisory firm which works with businesses at the key milestones, delivering bespoke solutions to help clients take advantage of opportunities and overcome a range of operational and financial challenges, enabling them to achieve their business objectives and ambitions. The business has 21 offices, including 17 in the UK, two international offices in Cyprus (Nicosia and Paphos), one in Mauritius and one in The Cayman Islands.