Beech Tree Private Equity today announces a £35 million management buyout (“MBO”) of Wavenet. Beech Tree Private Equity seek out high growth sub-sectors in the UK to invest in and then find the strongest businesses in these sectors to help develop.

In addition to funding the MBO, Beech Tree Private Equity, together with the Royal Bank of Scotland, have committed a significant acquisition war chest to allow us to make a number of key strategic bolt-ons to support the organic growth trajectory.

With SME businesses requiring increased data capacity together with hosted voice solutions, the demand for the services Wavenet provide is increasing rapidly. Wavenet has seen significant uptake in the demand for their solutions and now provide UC solutions to over 2,000 customers connecting in excess of 12,000 end points therefore making them one of the largest UC service providers to SMEs in the UK. The business was originally founded in 2000 and in [2003] the current CEO, Bill Dawson, invested and joined the business to help deliver the ambitious growth plans. Since this time the team has developed a number of specialist tools built around their own UK infrastructure network to enable high levels of automation and resilience whilst at the same time allowing the business to scale rapidly and easily integrate a variety of acquisitions.

Bill Dawson, CEO of Wavenet said:

“We are delighted that Beech Tree Private Equity are on board to support our growth plans, both organically and through acquisition. We believe we have found the right partners as both Paul and Adam really understand the sector and share our strategic ambitions. Furthermore, by tapping into their industry knowledge and network we have been able to strengthen our management team with the addition of Ed and Andrew. The most important point however for Chris and I is that Beech Tree Private Equity delivered on exactly what they said they would do from the outset”.

Paul Franks, Managing Partner at Beech Tree Private Equity said:

“We are really excited to be working with Wavenet and have been extremely impressed with the technology and expertise that the team have created within the Wavenet business. The management team have clearly invested heavily in the technology and infrastructure which will make the delivery of our growth plans much easier. We are also backing a team that have completed several acquisitions very successfully in the past and with the capital we have injected to make acquisitions, we think we can significantly grow the business together”.