Penningtons Manches advises Timico’s management team on Lyceum Capital’s £50 million+ investment

Posted: 10/02/2017

Timico Technology Group, a leading managed cloud service provider, has secured more than £50 million in investment from Lyceum Capital, the growth investors, to facilitate its evolution as a market-leading IT and cloud provider and fulfil its long term strategic objectives. Lyceum Capital is now the majority shareholder in Timico.

The deal will enable Timico to accelerate its ambitious plans for growth with further investment in systems, people and capability to make its mark in the managed IT service space. It will provide the necessary funds to finance selective acquisitions designed to bolster Timico’s skills and expertise in key areas and bring additional strategic service capability to the company.

Operating in Newark, Winnersh and London, Timico was founded in 2004 by Tim Radford. The business has a core client base of 500 mid-market and enterprise customers, revenues of £56 million and employs over 300 people. Over the past 12 years, the firm has grown substantially and has featured as one of the Sunday Times Tech Track Fastest Growing Companies. Lyceum is backing a strong management team led by Ben Marnham, who joined the business as CEO in September 2016. CFO Harry Pepper is joined by new COO Clodagh Murphy and Chief Commercial Officer Simon Payne. Tim Radford, will be reinvesting alongside Lyceum and remains on the board as a non-executive director.

Since joining the business, Ben Marnham has led a programme of change to re-structure the business around a single Timico brand and service model, honing the company’s strategy around its principal areas of strength and expertise and its core mid-market client base. Timico’s fresh, new proposition as an end-to-end managed cloud service provider, positions the company firmly in the managed IT and cloud space, complementing its network connectivity, unified communication and mobile capability. Alongside the injection of private equity investment, Ben and other key members of the management team have invested in a share of the company.

Penningtons Manches corporate partner Will Axtell led the deal team that consisted principally of Daff Richardson (employment partner), Kathy Hills (senior tax associate) and Nicola Harding (corporate associate). 

Ben Marnham, CEO of Timico commented: “Working with Lyceum Capital is a logical next step in Timico’s evolution, building on the foundations laid by Tim Radford and the team over the last few years. Lyceum have proven expertise in our sector and we share a very similar vision of Timico’s future within it. I am delighted we can now realise our plan to enrich our proposition and service portfolio so we can better serve our clients’ needs and fulfil our ambition to become a market-leading, end-to-end provider of IT and cloud solutions.

“Will and the team at Penningtons Manches provided invaluable investment guidance and support to management. Working seamlessly and collaboratively as part of a highly experienced group of advisors, their advice was key to helping successfully conclude management’s investment in the business.”

The Lyceum Capital team was led by Simon Hitchcock who joins the board alongside development partner Geoff Neville and included Mehul Kantaria, Anne Sofie Staunsbaek, Anne-Claire de Pompignan and Tom Maizels. The advisers in the deal were: acting for Lyceum: Oakley Advisory, Pinsent Masons, EY and PwC; acting for Timico: Lincoln International and Eversheds and acting for management: Penningtons Manches and Wyvern Partners.

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