The deal

FRP’s Debt Advisory team supports Pixel refinancing

We are pleased to have advised Pixel Holdco Ltd (Pixel), a mid-market IT managed service, data analytics and cyber security service provider, backed by Chiltern Capital, on a refinancing which provided substantial undrawn M&A funding to support its continuing buy-and-build strategy.

Our Debt Advisory team, led by Partner Tom Cox, supported a competitive refinancing process. The transaction ultimately resulted in Tosca Debt Capital (TDC) being introduced to provide a flexible, bilateral funding package with both the scope to re-leverage via M&A and deliver on bespoke shareholder requirements.

Having completed the first step in its M&A programme in mid-2021, via the acquisition of cyber security specialist Cyphra, FRP was engaged by the group to deliver a bespoke financing package that would support short term deal financing needs and the mid-term M&A strategy, augmenting client services alongside the existing platform Perfect Image, which Chiltern originally invested in 2019.

March 2022 by further draw down on committed funding to support the acquisition of Technique Limited, a mid-market managed service provider (MSP) based in Thatcham, Berkshire. The acquisition represented an ideal strategic and operational fit for the group, creating a truly national, cloud-centric IT services platform. The group expanded from Pixel’s heartland in the Northeast of England, Scotland, and Northern Ireland to add a strong mid-market and SME client base in the South of England, while providing further cross-sell opportunities alongside existing cyber and data analytics offerings.

TDC was quick to appreciate the national M&A opportunity, and provided a flexible funding package that would support Pixel in both short-term and longer-term M&A opportunities.

Kelly Simkiss, CEO of Pixel, commented: “We see significant opportunities ahead for organic growth as we take advantage of the cross-selling and up-selling opportunities within each customer base alongside further selective M&A. We were delighted with the support received from FRP Corporate Finance. The team ensured we had exactly what we needed to execute on the Technique deal and support our future growth.”

Tom Cox, Debt Advisory Partner at FRP, said: “The addition of Technique to the Pixel stable has created a genuine UK mid-market IT specialist with broad geographic reach, which will help accelerate organic growth. TDC quickly grasped the vision and opportunity, and was able to structure an excellent funding package that ticked all the boxes for Chiltern and the company in delivering on its mid-term strategy.”