Palatine completes investment in Ultra Secure IT hosting business, The Bunker
Palatine Private Equity has invested in The Bunker, one of the UK’s leading providers of ultra-secure managed IT services to mid-market UK companies. The transaction sees Palatine back the current management team, led by Phil Bindley with Andy Hague joining the business as Group CEO. The deal is the fifth deal out of Palatine’s third fund.
The Bunker, which delivers mission critical cloud solutions via its ultra-secure data centres, was founded over 20 years ago and operates nationally from sites across the South of England. Palatine plan to use The Bunker as a buy and build platform to create a full service cyber security business. Several acquisitions to achieve this aim have already been identified.
The requirement for UK corporates to have in place higher security for highly sensitive data has seen demand for the Company’s services accelerate in recent years, specifically within the Fintech and wider Financial Services sectors. Current levels of sales activity within the business show this rate of growth will continue with the company set to benefit from market headwinds such as GDPR and an ever greater demand for cyber security services.
The Palatine team comprised of Partner Tony Dickin, Investment Director Andy Strickland and Investment Manager Rupert Brown.
Tony Dickin, Partner at Palatine Private Equity, said: “We look forward to working with the management team of The Bunker and Andy Hague in building on the excellent market position the Company has in the high security managed service sector, as well as developing its position in the wider cyber security space. As part of the value creation plan for the business we will look to deliver a buy and build strategy and we are currently in discussions with a number of parties we believe will provide exciting additional services to The Bunker. We believe the management team have built a fantastic business to date and that there is a currently a significant market opportunity to develop the business further”
Palatine was advised by BDO, Gateley Plc and RSM with due diligence provided by CIL, Marsh and The Berkeley Partnership. Debt facilities were provided by European Capital and Santander.