Cavu Corporate Finance (Cavu CF) has recently advised Infinity Works on securing a multi-million pound investment from private equity firm Growth Capital Partners (GCP).
Infinity Works is a Leeds based IT consultancy business and works with a client list of blue-chip firms such as health care providers, supermarket groups, banks, delivery companies and online gaming giants.
The firm, started just five years ago in a co-working space in the Leeds Digital Hub, now employs close to 300 people, has offices in London, Manchester and Edinburgh and its turnover is close to £30m. The investment sees GCP take a minority stake in Infinity Works and will be used to support significant additional scale and reach and help increase its share of the multi-billion-pound market for IT services. The founders and directors, Matt Gaffney, Paul Henshaw, Dan Rathbone and Tom Walton, will retain majority ownership and control of the business.
The investment from GCP will enable Infinity Works to scale up its sales and marketing, other operational functions, the finance function, consider acquisitions of talent and technology, explore cutting-edge tech developments and expand into new sectors and territories.
The transaction was led by Stephen Moore, who heads up Cavu CF in Leeds with support from Thomas Brunsnes and Sahil Nayyar from the Newcastle office. Commenting on the deal, Stephen Moore said “Infinity Works is a great business with an attractive employee culture, significant growth potential and the proven ability to help large organisations achieve digital transformation. It is a great success story for the Leeds technology sector, starting life at the co-working Leeds Digital Hub in 2014 and growing into one of the UK’s strongest software consultancies while retaining a friendly and approachable style.”
The transaction demonstrates the continued strong interest from the private equity market in IT service companies. The sector has received significant investment in recent years, and investors remain on the look-out for companies leading and maintaining the UK’s digital transformation.
Shawn Bone of Cavu CF said “Cavu was established to support high growth, entrepreneurial and ambitious businesses. This is our third private equity deal completed in the last month and we look forward to assisting other ambitious businesses with their funding strategies. The North East, with leading companies across IT services, software development, fintech and gaming, is of particular interest to investors as the region continues to lead the digital field.”
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