UK-based telecoms and IT solutions service provider Excalibur Communications has undergone a management buyout (MBO).
Excalibur CEO Peter Boucher is leading the company’s management team as it takes majority ownership of the firm. The deal was backed by “significant funding” from Santander Corporate & Commercial and is part of a five-year growth strategy, according to the company. Former CEO and owner James Phipps maintains a minority stake and will remain involved in the company as Executive Chairman.
The management team expects to take full ownership of the business within five years while increasing investments and acquisitions in new technology, the company said.
The deal appears representative of the overall company culture. In an effort to properly reward staff members for the company’s success, Phipps and Excalibur set up a £1 million bonus incentive plan for the company -- in which employees receive an equal share of the bonus at various milestones as Excalibur grows.
“We have achieved our targets for the first year and are excited about delivering the rest of the five year plan,” said Boucher. “Our staff partners are at the heart of our business and we want to make sure they reap the rewards as the business grows. The £1million pound bonus will be shared equally amongst them.’’
Boucher recently celebrated his one-year anniversary as CEO. The company says in that time Excalibur had a record amount of volume and activity. “The firm met its expansion plan objectives for the year by delivering organic growth, the integration and acquisition of Ntegra IT Support Services, and a strengthened management team with the appointment of Richard Evans as finance director in September 2017,” the company wrote.
Excalibur Communications has more than 25 years experience and is a Vodafone partner, an EE Strategic Partner, Microsoft Gold Partner, Gamma Accredited Partner, and an HP Gold Partner.
Financial terms of the deal were not disclosed, but the funding required for an MBO is often substantial. MBO’s are often attractive transactions for professional managers as it offers potentially greater rewards as owners of the business, rather than employees.
