ORBIS ADVISES ON THE SALE OF INTEC MICROSYSTEMS TO CHILTERN CAPITAL AND MANAGEMENT

BUSINESS OVERVIEW

Intec Microsystems Ltd is a leading distributor of IT solutions and support, serving customers across the UK and Europe.

Founded in 2003, the company employs around 100 people and offers a comprehensive range of products, including laptops, desktops, servers, storage, networking and tech accessories from leading global manufacturers and challenger brands.

Intec has been a key player in the market for almost 20 years, and now trades with over 2,500 customers including many of the top VARs in the UK.

Orbis advised Intec over a 2 year period, working with the management team and shareholders to prepare the business for exit and project manage the transaction through to completion. The deal was led by Partner Tom McCarthy and Associate Director Nick Wall with support from Executive Adam Grenfell.

Orbis led an international sales process which generated offers from overseas IT businesses and UK-based private equity. Throughout the process it became clear that the backing of Chiltern Capital was the best option for the shareholders and the business.

Chiltern Capital LLP is an active private equity investor in the UK lower mid-market focusing its proven organic and inorganic growth strategy across Business Services, Industrials and TMT sectors. With the investment from Chiltern, Intec will look to deliver additional growth by working in close collaboration with key vendors and expanding the company’s product and service offerings.

Orbis spent 24 months working closely with the shareholders in order to secure a strategic price for the business. Specifically, we:

• Spent time with the shareholders to understand the unique selling points of both the distribution and services businesses and presented these in the IM
• Utilised our in-depth knowledge of the IT market to identify a number of strategic buyers domestically and overseas who understood the key value drivers of the business and the potential for future growth
• Presented the business to potential buyers, securing and negotiating multiple offers for the business
• Ultimately identified and introduced the shareholders to a financial buyer that completed the transaction
• Managed the preparation and flow of information throughout the diligence process to ensure commercially sensitive information was safeguarded, including redaction of customer names and employee data to comply with GDPR
• Ensured effective liaison and communication between both parties and all advisors throughout the deal process to deliver a successful outcome
• Negotiated and advised on key commercial aspects and the structure of the deal to resolve several key issues including a potential historic tax liability and property value uplift, leading to a successful completion.