Investment follows 3.5 years strategic counsel and operational support which saw ITLab grow EBITDA more than 8x
7x return on IT Lab marks a pivotal proof of concept for Astuta’s entrepreneur-led investor and advisory model
London, UK – 06 July 2016 – Astuta Partners (Astuta) – an entrepreneur-led investment and advisory firm providing strategic counsel, operational support and corporate finance to technology companies – has overseen the sale of a majority stake in IT Lab to ECI Partners in partnership with management led by CEO Pete Sweetbaum.
The exit comes after more than three years’ involvement with the business during which the London based managed services business was transformed. Astuta provided IT Lab with strategic and operational support, helping to rebuild its sales and marketing function, raise £15m of capital and complete three successful acquisitions.
Having amassed a strong portfolio of high growth technology businesses spanning enterprise SaaS, IoT, Big Data and FinTech, the IT Lab transaction presents a landmark deal for Astuta, marking an exciting point in the business’ growth trajectory and a clear proof of concept of the company’s capability to provide growth, strong returns and emerging presence in technology investments.
The execution and scale of the deal is testament to Astuta’s end-to-end operating model of strategic advice, consultation and growth capital, all of which has transformed ITLab into a £35m revenue national business.
IT Lab Founder Sebastian Gray says “In providing us with entrepreneurial insight and support Astuta helped equip us to take the step from growth firm to genuine mid-market player and, ultimately, to secure the backing of a leading house like ECI that will enable IT Lab to become a true industry force.”
Howard Sears, Astuta’s Chairman, comments; “Our management team has a solid track record of growing and exiting technology businesses so we know the value our model affords to our portfolio companies and their shareholders alike. This new phase for ITLab demonstrates the high risk weighted returns we can generate for shareholders and the scale of the opportunities which lie ahead. We believe there is a real opportunity for someone to own the space between accelerators/incubators and corporate finance, as entrepreneurs want access to capital, strategic advice and operational support all at the same time. The capital generated from ITLab will allow us to continue to grow our pool of domain expertise and further strengthen our value proposition – we have an exciting future ahead.”
For further information please contact:
James Melville-Ross / Darius Alexander
+ 44 (0) 20 3727 1000
Notes to Editors
Astuta is a new breed of hands-on investment and advisory firm to high growth technology businesses, with focused management expertise spanning enterprise SaaS, managed services, FinTech and Big Data. The company is run for entrepreneurs by entrepreneurs, providing end-to-end services – from strategic advice, consultation, operational support and corporate finance – to help business owners conceive, implement, grow and fulfil their ambition. Astuta’s investors are aligned with the objectives of the entrepreneurs with which they partner.