Alantra advises Graphite Capital on its investment in Digital Space

Oct 2022

Buy-side advisory

London – Alantra, the global investment banking and asset management specialist, has advised Graphite Capital on backing the management buy-out of Digital Space. The transaction, which is an exit for Horizon Capital, is subject to regulatory approval.

Digital Space provides a comprehensive, integrated connectivity, security and hybrid cloud managed service, underpinned by its own datacentres, core network and network operations centre. The company works with organisations looking to improve their operational workflow and accelerate growth through digital transformation.

Digital Space’s services are aimed at medium to large corporations as well as public sector and not-for-profit bodies with 500 to 5,000 staff. The company has 5,700 customers which span the retail, financial and professional services, manufacturing and construction, hospitality and leisure sectors. 

The addressable IT managed services market is estimated to be £58 billion, with the areas Digital Space serves forecast to grow at 10 per cent a year for the next five years. Led by chief executive Neil Muller, the group is set for strong expansion, building on the success of its strategic acquisitions and organic growth momentum. In the year to December 2021, it generated revenue of £57.4 million.

Humphrey Baker, Senior Partner at Graphite, said, “Neil has built an extremely strong management team and an attractive, well invested platform of services. Digital Space has the potential to be a highly differentiated player in this growing and resilient market, driven by high-quality provision of critical services to private and public sector organisations in the UK.” Neil Muller, Chief Executive of Digital Space, said, “Graphite’s expertise in the IT managed services market will prove invaluable as we strengthen and expand our core services.  We see exciting opportunities for further acquisitions and consolidation in the market. We are also looking to develop targeted sector-specific propositions and to build on our partner relationships.”