WHP bids to call the shots by swooping for Sitec
THE wireless telecoms services business WHP Telecoms has acquired Sitec Infrastructure Services, in a deal that will create a group with 500 staff and a turnover of more than £100m.
Private equity-backed WHP Telecoms, which has an office in Leeds, believes the deal will strengthen its market position and broaden its service capabilities.
Sitec is a project management company providing services for the UK’s mobile and fixed-line network operators.
The business specialises in network design, rollout, upgrade, and management to the mobile telecommunications industry. It also plays a major role in the planning and installation of fixed-line, fibre-optic networks.
A spokesman said: “The acquisition will also provide the platform for WHP Telecoms to enter the fast-growing and dynamic fibre market.”
This is the first acquisition WHP Telecoms has made since completing a management buyout backed by Equistone Partners Europe in 2018.
Commenting on the deal, Andi Tomkinson, of Equistone Partners Europe, said: “An important part of our investment strategy for WHP Telecoms is to build on its market leader status, boosting the scale and breadth of its services through organic growth and strategic acquisitions.
“The acquisition of Sitec Infrastructure Services fits with that seamlessly, presenting an exciting new opportunity to add to WHP’s customer base and geographical reach, as well as providing entry into new markets.”
WHP chief executive Rob Potter said: “Sitec is an excellent fit for WHP Telecoms, both in terms of our culture and the skillset that the team will bring to the company.
“The acquisition is consistent with our appetite to lead consolidation in the sector and continue to strengthen our services and breadth of offering.”
Sitec director Adam Eatock said: “This deal represents a major milestone in Sitec’s development; WHP is an excellent home for our business.
“We are looking forward to working closely with our new colleagues to explore new opportunities
and continue to deliver outstanding outcomes for our customers.”
Michael Loudon and Tom Barnwell at Clearwater International supported WHP with corporate finance and debt advisory services on the transaction, with Jemma Clarke and Ben Collins, at Addleshaw Goddard, providing legal advice and Chris Heatlie at BDO providing financial due diligence.
For its part, Sitec was advised by JDC Corporate Finance and Mills & Reeve.
Equistone is an independent investment firm wholly-owned and managed by its executives. The company is one of Europe’s biggest investors in mid-market buyouts.
It has completed more than 400 transactions over the last 40 years.
Equistone has a particular focus on change of ownership deals and aims to invest between €25m and €200m of equity in businesses with enterprise values of between €50m and €500m.
The company has a team of more than 40 investment professionals operating across France, Germany, the Netherlands, Switzerland and the UK, investing as a strategic partner alongside management teams.
Equistone is investing its sixth buyout fund, which held a final closing at its €2.8bn hard cap in March 2018.
Equistone is authorised and regulated by the Financial Conduct Authority.