The 2011-launched business is no stranger to takeovers, having purchased 13 companies to bolster its offerings since operations started four years ago. Its new parent company will support further growth by providing capital for additional mergers and acquisitions.
Charlesbank acquired 6DG from Penta Capital for an undisclosed sum, although investments are generally in the region of between $50 million to $100 million for companies with values of between $100 million and $750 million.
The private equity firm boasts capital of more than $3 billion and the buyout came from a desire to invest in the UK’s rapidly growing technology industry and establish a presence that has the potential for further expansion.
Indeed, with London Technology Week underway, research from mayor Boris Johnson’s team has revealed that London is leading the way for European tech. The findings found the UK capital achieved more international tech investment projects than Paris, Dublin, Madrid, Amsterdam and Munich combined.
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Alastair Mills, CEO of 6DG, who will be speaking at Real Business’ Value Creation conference on 25 June, said: Today, almost four years since the founding of Six Degrees, is an exciting day for our company. We are delighted to have delivered excellent returns to Penta during its ownership and we thank the team for supporting our original vision.
Now we are looking forward to working with Charlesbank to establish Six Degrees as the leading mid-market converged managed services provider, and we have ambitious plans to achieve this through both acquisitive and organic growth.
Charlesbank previously invested in telecom services firm Zayo in 2009 following the company’s launch in 2007 funding the young firm paid off as it has seen Zayo’s revenue grow from $200 million to more than $1.3 billion.
As such, Mills added he was looking to disrupt and redefine an industry that is ripe for consolidation and innovation with the help of Charlesbank, which offices in Boston and New York.
Michael Choe, MD and president of Charlesbank, added: Having spent close to a year getting to know Alastair and his team, we have tremendous respect for them and strong conviction in the attractive business model they have built.
As with Zayo, we see significant opportunity for 6DG to consolidate the fragmented landscape and drive equity value creation in the process. We are very excited about our partnership with the team at Six Degrees.