Swindon-based IT communications company Excalibur has secured a seven-figure funding package with HSBC Commercial Bank to support growth, including financing a management buy-out (MBO) and creating 20 jobs.
Under the MBO, chief executive officer James Phipps becomes the majority shareholder with an 80% stake in the business. The move is expected to help drive revenues and create jobs at the company as it looks for both organic and acquisition-driven expansion.
HSBC’s Wiltshire commercial team provided the finance package, which includes extended working capital facilities t
o support its growth plans. Excalibur moved its full business banking to HSBC last year in a deal led by senior international commercial manager Gary Mealing.
Excalibur provides mobile communication, telecoms and IT services to more than 5,000 businesses across the UK. The company, which sponsors Swindon Town Football Club manager Paulo Di Canio and the club’s Stratton Bank stand, was founded in 1993 and employs more than 60 people across its Swindon headquarters and offices in Chertsey and Basildon.
James joined Excalibur in 1999 and was appointed managing director in 2010 before becoming chief executive last year. During his time in these senior roles the company has embarked on a significant acquisition programme to drive growth. He said the MBO signalled the company’s ambitions to generate further growth and embrace new trends in the IT industry.
Founding managing director Gary Wetherall is stepping down, although he retains a stake in the business.
James has appointed four new senior managers following the MBO, including Dave Wardell, former head of global sales at Nokia Siemens Networks, as sales director and Tim O’Donnell, former VP of operations at IT services company Sentaca, as operations director. Sally Parker will take on the role of Excalibur’s service delivery manager and Melanie Stevens has been recruited as HR manager. In addition, the company is looking to add another 20 sales and operational staff by the end of January.
James said: “Revenues are up 50% on this time last year but we think there is scope for further growth in this market. I am keen to push the boundaries of this business and to ensure we continue to meet and exceed our customers’ needs and expectations.
“HSBC’s role was critical in this MBO and we see the bank as a valued and long-term partner.”
Mr Mealing said: “We have been impressed by James’s passion and tenacity in driving Excalibur’s growth and it is exactly the type of business that is helping the UK’s economy trade out of these difficult times.”
Advisers on the deal included Swindon law firm Thrings, whose team was led by head of South West corporate John Davies, assisted by Simon Hore.
Mr Davies said: “Thanks to the prompt and commercial instructions we received from James and his team, we were able to meet the tight timescale for completion of the MBO of this dynamic and successful business. I would like to wish James and his team continued success in the future.”
Accountants Grant Thornton and Bristol law firm and Bond Pearce were also engaged as advisers.
Grant Thornton partner Mark Taylor added: “We are delighted that we played a part in the MBO, which is an important next step in the development of the business. The opportunities for the business are significant and we look forward to seeing the management team take advantage of those opportunities.”
