Net Essence acquires Workshop IT with Growth Lending aid

Net Essence has announced its acquisition of Workshop IT, expanding its capabilities and market reach in the IT services sector.

The acquisition has been funded by Growth Lending through a term loan, facilitating Net Essence's strategic growth. This financial backing not only covered the acquisition itself but also involved the refinancing of existing debt, providing much-needed growth capital for future expansion plans.

Net Essence, known for its expertise in managed IT services with a focus on hospitality, architects, and engineering firms, recognised a synergy with Workshop IT. Specialising in the architecture, engineering, and construction (AEC) sector, Workshop IT's services complement those already offered by Net Essence. The acquisition of Workshop IT follows previous similar transactions involving About Networks, Aprium, and Mlode.

The resulting combined workforce of 26 full-time employees from both companies is expected to enhance the firm's ability to provide a broader range of services, leveraging the deep expertise present within both teams.

Yvan Bamping, CEO of Net Essence, commented on the acquisition: "This is a transformative step for our business. By combining our strengths with Workshop IT's specialised knowledge, we're poised to deliver even greater value to our clients and accelerate our growth trajectory."

Chris Mears, Regional Head South at Growth Lending, praised the collaboration and said: "Supporting ambitious and agile SMEs is in our lifeblood, and so it is very satisfying to have provided a funding package to support the growth plans of Net Essence. The acquisition of Workshop IT brings together two businesses with clear complementary capabilities and offerings. They also share a passion for innovation and exceptional customer service. We have thoroughly enjoyed working with Yvan and the team and look forward to supporting their continued growth."

The deal necessitated detailed transaction management and changes to operational practices and governance systems. This process was supported by PKF Francis Clark and gunnercooke LLP, whose understanding of the transaction's specifics was deemed crucial to its completion.

Nathan Holland, Corporate Finance Associate Director at PKF Francis Clark, stated: "We were pleased to support Growth Lending on this transaction, which will help pave the way for Net Essence's next phase of growth and demonstrates Growth Lending's flexible support for growing SME businesses. Our approach to due diligence is to collaborate closely with all parties involved in the deal to make the process as smooth and efficient as possible."

Jonathan Rogers, Partner at gunnercooke LLP, commented: "It was a pleasure to support Growth Lending and Net Essence Limited in this transaction. The acquisition is a great fit for all involved and creates a platform for further growth to support the SME client base of Workshop IT Ltd, which is a perfect fit with Net Essence Limited's client base."

With this acquisition, Net Essence aims to strengthen its position within the market and align itself to play a more significant role in the future of managed IT services.