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Oakey advises on Synetrix disposal
Completed Transactions - Synetrix Logo
Transaction Type:
December 2009
Deal Value:

Oakley Capital Corporate Finance (“Oakley”), the mid-market Corporate Finance and Corporate Broking specialists, advised the shareholders of Synetrix (Holdings) Ltd (“Synetrix”; “the Company”) on its sale to The Capita Group plc (“Capita”) for a cash consideration of £75m, net of cash acquired. The disposal to Capita followed a two year relationship with Synetrix, culminating in the launch of a competitive sale process to both trade and private equity buyers. Synetrix shareholders included the four founders who continued to lead the Company and also Apax Partners (“Apax”), which owned a majority of the business.

Synetrix was founded in 1998 and grew rapidly to become a leading provider of ICT application and communications solutions, specialising in the public sector and in particular the education market. public Synetrix specialises in the design, development, integration and deployment of converged networks, hosted application solutions, managed security solutions and software platforms. Clients for its broadband and infrastructure services include the London Grid for Learning, comprising all 33 London local authorities, and the East Midlands Broadband Consortium, a grouping of eight local authorities.

Synetrix, which employs just under 200 staff in Staffordshire and Hampshire, combined strong organic revenue growth with high margins and excellent cash generation. The Company was forecasting an operating profit for the year ending 30 June 2010 of £10.9 million on a turnover of £73.7 million.

The decision to sell to Capita came after a rigorous process run by Oakley, during which several offers for the Company were received. Capita IT Services offered a compelling strategic fit with Synetrix. It currently offers organisations the full ICT lifecycle ranging from business analysis through to a fully managed service. The acquisition of Synetrix adds to and strengthen Capita’s IT capabilities.

The Oakley process was led by Chris Godsmark, Joint Managing Partner.

Commenting on the completion of the sale, Chris said:

“Capita emerged a strong partner for the Company, offering a very clear strategic fit and the potential for significant expansion in terms of cross-selling opportunities into its substantial public sector customer base. We were delighted to have worked with the Synetrix management team and Apax during this journey and wish them well under new ownership.”

The deal is the 18th completed transaction for Oakley since the business division of Oakley Capital was launched in July 2007. Oakley provides M&A and Corporate Broking advice to mid-market corporate clients with a value typically of up to £500m, in sectors including technology, telecommunications, media and financial services.

For more information contact:

Chris Godsmark, Partner
+44 207 766 6900

*Completed by Oakley Capital Corporate Finance

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