Pictet Alternative Advisors, the alternative investment business of the Pictet Group, said its direct private equity team has acquired Newcastle-based Technology Services Group (TSG), a fast-growing provider of managed IT services in the UK.
Pictet acquired TSG from the original founder owners Graham Wylie and David Stonehouse, and from management, with the management team reinvesting proceeds as part of the transaction.
TSG is a fully accredited Microsoft Solutions Partner for small and mid-sized businesses across the UK.
It specialises in delivering IT solutions within the Microsoft ecosystem, and helps businesses transition to cloud-based IT infrastructure.
Based in Newcastle, and with over 250 full-time employees across offices including London and Glasgow, TSG serves 1,300 clients in a growing IT services market, driven by strong demand trends for outsourcing, digitalisation and the cloud transition.
TSG offers professional advisory and managed services across a breadth of Microsoft workloads including Azure & Cloud Services, Business Applications, and Cybersecurity.
Andrzej Sokolowski, Head of UK for Direct Private Equity at Pictet, said: “TSG has an attractive and defensible business model, a high proportion of recurring revenue, and customers who value its service quality and technical expertise across the Microsoft tech stack.
“We see significant potential to increase TSG’s growth organically and via M&A. That includes solution areas in Azure, Dynamics and cybersecurity, as well as accelerating deployment of AI tools.”
Edmund Buckley, Head of Direct Private Equity at Pictet, said: “We invest in high quality businesses run by entrepreneurial leaders. We’re pleased to be partnering with Rory McKeand and the TSG management team, and helping the business fulfil its growth ambitions.”
Rory McKeand, CEO of TSG, said: “Pictet’s investment and hands-on partnership will catalyse the next stage of our growth.
“With the penetration of cloud services among UK SMEs increasing rapidly from a low base, and a new powerful generation of Microsoft productivity tools becoming available, there’s ongoing demand for our services across a large addressable market.”
Speaking on behalf of the founder shareholders, David Stonehouse said: “We are proud of the growth and success that TSG has achieved, creating a leading Microsoft and cloud focused national IT services provider of outstanding quality, with the potential to do even better.
“We wish Rory, his team, all the staff and Pictet all the best for the future.”
Pictet was advised by Sidley Austin (legal), RSM and Deloitte (financial and tax), PwC Strategy& (commercial), Marlborough Partners (debt), and KPMG (corporate finance).