Manchester-based cloud hosting firm UKFast said on Thursday its private equity investor Inflexion is increasing its shareholding to approximately 75%.
Founders Lawrence and Gail Jones have left the company. Former 3i veteran Richard Bishop joins the firm as chairman.
Lawrence Jones stood down as CEO of UKFast last October following allegations in The Financial Times of inappropriate behaviour.
The former CEO “categorically” denied claims of any unlawful behaviour, saying the allegations were wholly untrue.
In a statement, UKFast said: “The deal sees Inflexion Private Equity become majority shareholder in the Manchester-headquartered firm, supporting its impressive growth trajectory and allowing for continued investment in capability in the specialist areas of cloud security, networks and remote desktop services.
“As part of the transaction, Inflexion expects to recruit a new CEO to support new and existing members of the management team in driving forward the group’s growth strategy.”
Lawrence and Gail Jones said: “We chose Inflexion initially because of their track record growing businesses and are confident we’re leaving UKFast in great hands.”
UKFast added: “The UKFast Group will also simultaneously take an option to acquire leading cyber security business, Secarma.
“Secarma is the preeminent supplier of specialist cyber-services to some of the world’s leading brands.
“Secarma’s teams of CHECK and CREST certified consultants are experts in invasive code-breaking, cyber-defence and cyber-intelligence to protect businesses from critical financial loss and reputational damage.”
UKFast Group also announced it has appointed Richard Bishop as non-executive chair.
Bishop brings 30 years’ experience working with fast-growing businesses both as a private equity investor and as a chairman.
Bishop spent 22 years at 3i before becoming head of investments at the Business Growth Fund in 2011.
Bishop said: “UKFast is a strong business with exciting growth ahead.
“The team’s commitment to delivering outstanding service to clients is second to none, as is the level of technical innovation.
“I’m looking forward to working with senior management and the wider team to build on that success and accelerate growth in areas of real opportunity.”