Hutchinson Networks, an Edinburgh-based global technology business, has received a £2.2m growth capital investment from funds advised by YFM Equity Partners (“YFM”), the private equity fund manager.
Hutchinson Networks Limited is a leading provider of multi-vendor IT and network solutions to national and international clients offering advanced infrastructure services to a rapidly expanding client base, including a major UK airport, an international consumer brand, several Fortune 100 companies and a global retail technology brand.
Hutchinson Networks employs 89 staff across the UK and a network of professionals across the globe. The business is projecting turnover of £11.5m this year, rising to £16.5m in 2019. The investment from YFM advised funds will enable the company to recruit an additional 50 technology staff during the next two years.
Founded in 2011 by Paul Hutchinson (CEO) and Stephen Heslop (COO), Hutchinson Networks has experienced significant revenue and profit growth in recent years. The management team, including CTO Stephen Hampton, were seeking growth capital to fund additional marketing and operational resources to accelerate international growth.
Nigel Owens, Investment Director at YFM responsible for the Scottish market said: “Hutchinson Networks has an outstanding reputation with its clients and its technology partners. The company has grown strongly due to the drive and energy of the management team. The plans for the business to scale both sales and employment whilst expanding their geographic footprint in a growing market fits perfectly into the portfolio of businesses in which we are investing.”
Stephen Heslop, Hutchinson Networks’ Chief Operating Officer said: “The general move to cloud-based services across all industries continues to drive exceptional growth opportunities for us. We are very pleased to have YFM as investors; we liked the straightforward approach and their experience of supporting growing businesses. We will now focus on delivering our transformative technologies and expertise to clients in the UK and globally”.
Hutchinson Networks was advised by Paul Mason and Jonathan Griffiths of Chiene+Tait LLP and Stuart Hendry of MBM Commercial. Legal advice to YFM was provided by Murray Jack and Cristin Craig of Addleshaw Goddard LLP, financial due diligence was carried out by Johnston Carmichael, commercial due diligence by Philip Carse of Megabuyte and organisational due diligence by Anna Cornwallis of Stratton HR.