Tech: Graphite Capital’s acquisition of Horizon Capital portfolio company Digital Space
Armstrong is pleased to have provided Commercial Due Diligence (CDD) support for Graphite Capital’s acquisition of Digital Space, an integrated connectivity, security and hybrid cloud managed service provider.
Originally founded as Timico in 2004, Digital Space employ 340 team members, delivering its comprehensive services from its own datacentres, national core network and Network Operations Centre, with sites in Newark-on-Trent, Telford and London. The company has 5,700 customers which span the retail, financial and professional services, manufacturing and construction, hospitality and leisure sectors.
Graphite Capital’s investment will enable Digital Space to continue to grow the business both organically and via targeted acquisitions as well as supporting the business’s mission to help their customers reduce costs and improve productivity through digital transformation.
Armstrong’s Commercial Due Diligence (CDD) looked at market trends and competition, assessed management’s strategy for growth and provided a detailed analysis of the impact of the current macroeconomic environment.
Armstrong’s work on this deal is an example of targeted diligence to proactively answer the uncertainty in the tech market surrounding semiconductor shortages, tight labour markets and uncertainty in target verticals.
Charlie Mundy, Senior Consultant, Armstrong, said: “Digital Space is a high-quality business which has successfully pivoted to a differentiated lead service proposition in a complex, fragmented market. Digital Space and Graphite have the ability to grow organically and through acquisitions, and we look forward to seeing the further, successful growth of the firm.”
Humphrey Baker, Graphite Capital, said “We are pleased to have completed our investment in Digital Space with the support of Mike, Charlie, and the Armstrong team. They quickly got up to speed with the current and future propositions, which together with their extensive sector expertise gave us clear and useful insight to support our investment hypotheses.”
The acquisition remains subject to regulatory approval.
For more information or to find out Armstrong’s views on the technology sector, please contact:
Mike Callow, Partner
Charlie Mundy, Senior Consultant