Comms VAR Arrow takes on new private equity investment
Comms VAR's M&A spree set to continue
Comms VAR Arrow Business Communications has taken on new private equity investment from MML Capital Partners to reinvigorate its buy-and-build strategy.
The deal has handed the firm a £50m war chest that it said will allow it to continue an M&A spree that saw it acquire eight businesses, with the support of PE house Growth Capital Partners (GCP).
The new investment comes at the same time as Arrow reshuffles its leadership team, with previous CEO Chris Russell taking on the role of chairman and Richard Burke, who joined the business in 2017, taking the hot seat.
Arrow told CRN that MML has taken a majority stake in the business, with previous partner GCP exiting the business.
Russell said: "I am immensely proud of what we have achieved as a team over the last three years, maintaining industry-leading employee engagement scores and a remarkable culture while experiencing continuous growth."
Arrow's most recent acquisition came in December, in the form of comms provider BTL Communications.
But Arrow has expanded its horizons over recent years and now sells more energy than IT and telecoms combined, Russell told CRN last year.
Richard Shaw, partner at new private equity backer MML, said: "We are delighted to be partnering with Arrow in its next phase of growth.
"Arrow's market-leading customer service and unique product portfolio provides a differentiated offering for its customers, which is supported by its exceptional company culture.
"Chris, Richard and the rest of the team have delivered strong growth and we are backing them to do more of the same."
Arrow said that it has tripled its earnings and doubled its employee base after taking on investment from GCP in 2016.
In its most recently reported year the firm reported sales of £22.1m, down two per cent on the previous year.
EBITDA was down 14 per cent, which Arrow said was a result of costs associated with its M&A spree.
Richard Shaw, partner at GCP, said: "Arrow has a unique culture and exceptional focus on delivery and it has been a pleasure to be in partnership with Chris, Richard and the wider team and to support them in achieving their ambitious growth plans.
"The investments made in people, systems and a national office infrastructure, together with the eight acquisitions we have completed means Arrow is ideally placed for significant further growth as a fully integrated platform of scale. We wish the team and their new investors the very best of future success."