Advantex

Advantex, the Gateshead-based technology solutions provider, is set to accelerate its growth plans under Managing Director, Dave O’Connell, following a successful management buyout (MBO) advised by our Corporate Finance team.

Founded in 2002 by brothers Dave and Steve O’Connell, Advantex has grown into a leading provider of IT, communications and security solutions, working with manufacturers, education providers, local authorities and hospitality operators across the North East and beyond. Its 70-strong team supports high-profile clients, including Baker Hughes, Newcastle International Airport, Caterpillar, Northumberland Estates and Hitachi.

With Steve stepping back from the business, we were appointed to facilitate his exit and advise on the purchase of his shares by Dave. Led by Partner Abu Ali, our Corporate Finance team conducted a detailed valuation to establish a fair price for the business, structured a transaction that worked for all parties, and ensured minimal disruption to day-to-day operations.

The deal secures leadership continuity at Advantex and helps maintain confidence among employees, customers and other key stakeholders. The business is now focused on expanding its footprint and actively recruiting across additional engineering, business support, sales and operations roles.

Abu Ali, Partner at FRP Corporate Finance, said: “Early engagement with an adviser can be critical in a management buyout to ensure day-to-day operations continue seamlessly – which was essential for Advantex as it maintained its impressive growth trajectory.

“Advantex is a fantastic example of the scalable, innovative technology firms thriving in the North East. With strong investor interest and healthy performance, it’s an exciting time for the business under Dave’s leadership and we look forward to seeing how he drives it forward.”

Dave O’Connell, Managing Director at Advantex, added: “Throughout our journey, we’ve built Advantex on the foundations of technical excellence and an unwavering commitment to our customers’ success. As we move forward, we’re in a prime position to accelerate our growth plans with a robust pipeline of contracts, strong financial performance and most importantly, a talented team of 70 professionals who share our vision for innovation and service excellence.

“The support provided by Abu and the team at FRP Corporate Finance was second to none. Their depth of knowledge and clear advice played a key role in getting this transaction over the line, and I’m now excited to lead Advantex into this next chapter of growth.”

RMT (corporate finance sell-side), Swinburne Maddison (legal buy-side), Square One (legal sell-side) and RSM (tax) also acted as advisers on the deal.