Entanet calls on equity firm Mobeus to back £14m MBO
No longer 'restrained by group policy' chimes MD Chen
Wholesale internet connectivity services provider Entanet has completed a £14m managed buyout with the backing of private equity firm Mobeus.
MD Elsa Chen, financial director Ian Brewer and sales director Stephen Barclay were involved in the deal that saw the VC stump up £6m to invest in workforce (currently 85 heads) and network expansion.
Talking to The Channel, Chen said the move gives it greater independence to "develop a strategy that is more suited to Entanet rather than being restrained by group policy".
Founder Jason Tsai, boss of the Enta Group, which also houses IT distie EntaTech and online marketing biz EntaMedia, will retain a majority stake in the firm with the management team, Chen confirmed.
Midlands-based Entanet sells to a customer base of 2,000 resellers, and is the only non-BT company connected to all aggregation points that form BT's 21st century network (21CN), providing up to 10Gbps capacity.
The national network couldn't prevent a wobble last November when services crashed leaving some angry customers in its wake.
The firm has over 900 peering relationships across Europe and runs three data centres at its Telford HQ.
"Technology development will be high on the list," said Chen, "we plan to introduce new services but that is still under discussion".
In the year to 30 November 2012, the last available accounts at Companies House, Entanet turnover came in at £25.9m versus £25.3m in the previous fiscal. Operating profit bounced to £2.43m from £1.77m.®