Charlesbank Capital Partners is to acquire Six Degrees Group (6DG) from Penta Capital. The Boston-based mid-market private equity firm has over $3bn of capital under management and this deal gives it a platform investment in the UK tech sector. Post-acquisition, 6DG will benefit from substantial additional capital to fund the company's ambitious M&A programme.
6DG CEO Alastair Mills said: "We are working with Charlesbank to establish Six Degrees as a leading mid-market converged managed services provider, and we have ambitious plans to achieve this through both acquisitive and organic growth."
6DG was formed in June 2011 and has grown both organically and through acquisition to become a truly converged managed services provider delivering cloud, colo, data and unified communications solutions to the UK mid-market.
Mills pointed to Charlesbank's track record of supporting leading growth companies in the sector, noting that the firm invested in Zayo in 2009 just two years after it was founded, and has been involved in the company's growth from $200m to over $1.3bn of annualised revenue.
"We intend to disrupt and redefine an industry that is ripe for consolidation and innovation," added Mills.
Michael Choe, MD and President of Charlesbank, said: "Having spent close to a year getting to know Alastair and his team, we have tremendous respect for them and strong conviction in the attractive business model they have built.
"As with Zayo, we see a significant opportunity for 6DG to consolidate the fragmented landscape and drive equity value creation in the process."