01732 759725 30 DISTRIBUTION IT hardware, software and services distributor, Intec Microsystems has been acquired by private equity investor Chiltern Capital and its management team, with growth plans to exceed £100m+ in the next 12 months Chiltern Capital acquires Intec Microsystems services, networking and consulting, and built the business to a team of 400 technical staff with contracted revenue of 75 per cent before selling to private equity in 2011. From 2011, Cantwell has worked closely with several companies advising on exit strategies and managing the sale process, including leading the carve out of Misco Group from the US parent company. A growth offensive According to Cantwell, with the investment from Chiltern, Intec Microsystems is embarking on a growth offensive: “We don’t want to be the best-kept secret anymore. We work with some amazing challenger vendors and we’re moving up the value chain. Our goal is to deliver growth by working in close collaboration with our vendors and expanding our product and services offering to best serve our customers.” Last financial year, Intec Microsystems had revenue of £75m, with a run rate to achieve £100m within 12 months from the acquisition. “By focusing on developing partnerships with existing vendors and helping them with their marketing strategy, we believe we can capture a larger share of their UK revenue. At the same time, we will be onboarding new vendors to build on our portfolio,” Cantwell explained, adding: “Some of Intec's vendors struggle to get top tier distributors to promote their products and services as professionally as Intec and feel Intec is a true partner.” Intec is an official vendor for Ubiquity, Zyxel, Targus, Riello, Vertiv, iQuilla and Ecare +. The company is already bolstering its vendor portfolio with five new manufacturers due to be revealed over the coming months. With the addition of these new vendors and a revitalised sales and marketing strategy, the company intends to boost its current 2,500 customer base by targeting the 8,000 VARs operating in the UK. Expansion plans As part of its expansion plans, Intec Microsystems will focus on recruitment as well as training and developing its existing team members. Cantwell said: “Our management team and staff have the knowledge and expertise for growth. We will continue to grow our teams, invest in the original teams and build out skills to suit the existing and new vendors. We’ll fill any gaps in the business by recruiting more expertise and with the investment we now have, we can afford to be more competitive in the market.” Joe Bennett, Investment Director at Chiltern Capital, said he has admired Intec Microsystems for a long time. “It has delivered impressive growth in recent years, and we are confident that with the combination of the existing management team supported by Alan’s deep sector experience, the business is well positioned for the future. “At Chiltern, we back businesses that are well established in their market and highly regarded by customers and suppliers, and Intec ticks those boxes.” https://intecmicros.co.uk/ As part of the deal, the previous majority shareholder, Dean Leather, will step down from his role and the business will continue to be run by existing directors, Andy Russell, Ian Whatton, John Lester and Stuart Hall. Industry veteran Alan Cantwell will join the board as Executive Chairman to oversee Intec Microsystems’ next phase of growth. “Having founded Intec 20 years ago and seen it deliver fantastic growth over that period, now is the time to pass on the baton,” said Leather. “I know that with Alan and Chiltern providing additional support to the highly capable team, I’m leaving Intec in great hands and with people who will take the company to the next level.” Cantwell has worked in the IT distribution channel for more than 40 years. He first entered the sector in 1983 at the beginning of the PC evolution working with an Olivetti reseller called Team Systems Group Limited. He founded Selection Services PLC in 1988, a firm primarily focused on Alan Cantwell
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