Background

Pixel Holdco Ltd (Pixel) is a mid-market IT managed service, data analytics and cyber security service provider, with a strong presence in its geographic heartland of north-east England, Scotland, and Northern Ireland, and a buy-and-build M&A expansion plan. Backed by Chiltern Capital, Pixel had completed a bolt-on acquisition in the cyber security sector, and was looking to refinance to support an increase in gearing within the business, while providing additional facilities to support further M&A. The company approached FRP to deliver a bespoke funding package.

Action

FRP’s Debt Advisory team was appointed as exclusive debt advisers to the company, and was engaged to run a competitive debt raising process. Our team drafted comprehensive debt briefing materials to sell the business to the lending community, and engaged with a shortlist of the most appropriate lenders. We worked with Pixel to deliver a succinct and effective management presentation, supported the company in negotiating financing terms and securing credit-backed proposals, and provided senior level support throughout the engagement and during the negotiation of legal documents, alongside legal counsel.

Outcome

The transaction ultimately resulted in Tosca Debt Capital being introduced to provide a flexible, bilateral funding package with both the scope to re-leverage via M&A and deliver on shareholder requirements. The bespoke deal delivered increased liquidity in the business as well as additional facilities and funding to support further M&A opportunities. This included the acquisition of Technique Limited, a mid-market managed service provider based in Thatcham, Berkshire – an ideal strategic and operational fit for the group, establishing Pixel as a truly national, cloud-centric IT services platform.