IT Group Pulsant Seals £200m Sale To Oak Hill
Mark Kleinman, City Editor
One of the biggest providers of IT services to British small businesses is poised to be swallowed by a US buyout firm in a £200m takeover deal.
Sky News understands that Pulsant is close to being sold to New York-based Oak Hill Capital Partners.
The transaction could be announced as soon as next week, according to insiders.
It will land a handsome windfall for Bridgepoint Development Capital, the investment firm which built Pulsant from a series of acquisitions, beginning with Lumison in 2010.
A number of other businesses, including Blue Square Data, Dedipower and Scolocate, were also bought and integrated into Lumison, which was rebranded as Pulsant two years ago.
Pulsant has benefited from increasing demand from small and medium-sized businesses (SMEs) for outsourced provision of cloud-hosting and managed data services.
The sale of Pulsant will provide further evidence of the robust nature of the so-called secondary buyout market, in which private equity firms buy companies from each other.
It will also underline the effectiveness of BDC’s ‘buy-and-build’ strategy, which buyout groups use in order to try to create businesses which are greater than the sum of their parts.
Oak Hill is understood to have seen off competition to buy Pulsant from rivals including Abry Capital and Summit Partners.
The US-based fund is a prolific investor in the IT infrastructure sector, having previously owned a large stake in Telecity, an operator of internet data centres.
Bridgepoint declined to comment, while Oak Hill could not be reached.