Paragon buys majority stake in South Yorkshire firm Parseq

Parabellum Investments has sold its majority stake in business process outsourcing specialist Parseq to Paragon Group, a European business services provider operating across 26 countries.

Parseq is based in Hellaby, South Yorkshire, and provides outsourced workflow services including document handling, financial processing and payment processing. The deal adds a back-office and payments operation to Paragon's wider outsourced services portfolio.

Parabellum, the family office of turnaround investor Rami Cassis, acquired control of Parseq in 2007. At the time, it was a corporate disposal with a team of 15 people. The business has since expanded significantly, marking a near-20-year holding period for the seller.

Growth Track

Parseq reported revenue growth from GBP £11 million to GBP £25 million over the last three years. The wider group previously reached £65 million in turnover in the late 2010s before a restructuring.

In 2018, Parabellum and Cassis sold Parseq's contact centre arm. The remaining business focused on back-office services and payment processing, which Paragon has now acquired.

Paragon operates across the UK and several European markets, including Ireland, Luxembourg, Belgium and the Netherlands, as well as the DACH region and Western Europe. It positions itself as a provider of outsourced services across brand and customer engagement and operations.

Regional Employer

Parseq employs more than 300 people, according to information released with the deal announcement, making it one of the larger employers in South Yorkshire. Earlier background information put the headcount above 500 at its peak.

The company serves clients across financial services, telecoms and the public sector, including BT, EE and HSBC. The deal information also states it works with most of the UK's high-street banks.

Parseq has also taken on national-scale public-sector work, serving as the primary data services provider for the 2021 UK Census.

Payments Focus

Parseq describes itself as the UK's largest Bacs and cheque payments processor. It reports processing more than £36 billion in payments and digitising 70 million documents each year, and says it serves more than 75 international clients.

The business operates five offices across the UK, Bulgaria and India.

Parseq has won awards, including a 2020 Company to Watch for Excellence award and a 2022 Employer of the Year award from the GSA Professional Awards, as well as a 2022 Editor's Choice award at the Document Manager Awards.

Chief Executive Craig Naylor-Smith will remain in post. Cassis served as chairman during Parabellum's ownership.

Speaking after the deal, Naylor-Smith linked the transaction to client requirements and international scale.

"Joining Paragon is a significant milestone that directly benefits our clients. By combining our strengths, we're able to scale our back-office and payment solutions onto a global stage. This isn't just about growth; it's about giving our clients the international reach they need without ever compromising on the rigorous security and service standards they've come to expect from Parseq."

"The business has grown significantly under Parabellum's stewardship, and we could not have done it without Rami and the team," Naylor-Smith said.

Owner Exit

Cassis described the sale as the end of a long investment period and pointed to the company's evolution since 2007.

"Comparing the Parseq of today to the business we acquired in 2007, it is just remarkable to see how the company has transformed - and it has been a real privilege to be a part of its journey," said Rami Cassis, principal at Parabellum Investments. Having seen Parseq's growth from the very beginning, it is a bittersweet goodbye. However, it is reassuring to know that there could be no better home for Parseq's team and clients than Paragon. Paragon's multi-channel offering and global reach are truly impressive, and I wish all parties the very best in this new partnership," Cassis added.

Parseq will sit within Paragon's global footprint. The business is expected to continue operating from South Yorkshire while expanding its reach through the buyer's network.