Deal summary

Formed in 1999, Zycko is an international IT distributor of innovative IT Solutions, covering technology areas for every part of the IT infrastructure with a focus on data networking, storage and data centre infrastructure. They have a reputation of working with leading edge technology partners which they then distribute and support to an established customer base. The shareholders had concluded that in order to allow the business to prosper and scale across its market it needed to work with a third party to facilitate that.

What difference did we make?

This is a highly specialised market and it became apparent early in our role that it needed a party that understood the nuances of the market to make the most of the opportunity. Traditional private equity was unlikely to be able to offer this and therefore the decision was made to focus on funders with a detailed knowledge of the space. The obvious candidate to do this was Rigby Private Equity (RPE), a private fund established by Sir Peter and Steve Rigby following the successful sale of their business SDG to Techdata.

We therefore worked closely with the shareholders, the operational management team and RPE to agree a solution that would facilitate an exit for some shareholders and the funding support to accelerate growth.

The deal successfully completed some four months after engagement and the new group has continued to prosper with two further acquisitions completed. The multiple achieved on the entry price was significantly ahead of benchmark multiples in the sector.

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