Alantra advises TelcoSwitch on investment from Queen’s Park Equity



Jun 2022
Sell-side advisory

7 June 2022: Alantra, the global investment banking firm, has advised the shareholders of TelcoSwitch on an investment from Queen’s Park Equity (“QPE”). TelcoSwitch is a leading provider of unified communications and compliance solutions supporting 140,000 active daily users across 65 countries. The company has been recognised in The Sunday Times Tech Track 100 and the FT 1000: Europe’s Fastest Growing Companies.

The investment will enable TelcoSwitch to explore further M&A opportunities, broaden its channel-focused product suite, increase headcount to better serve its customers, and surpass 400,000 active users by the end of 2024. This follows on from a series of successful acquisitions completed in the last 18 months, including OneVoice, PBX Hosting, and SureVoIP.

Businesses that operate in the communications software sector are attracting significant investor interest due to continued growth in global cloud communications users and their high levels of recurring revenues on long-term contracts. The sector’s buoyant M&A activity is evidenced by the series of transactions Alantra has advised on including Livingbridge’s investment in Semafone (now Sycurio), Inflexion’s investment in Digital Wholesale Solutions (“DWS”), Graphite Capital’s £90m acquisition of Babble and the sale of Giacom to DWS.

Alantra’s UK Technology team, including James Chapman-Andrews, Oliver Norman and Will Fenby, advised TelcoSwitch.

James Chapman-Andrews, UK head of Technology at Alantra who led the deal commented, “TelcoSwitch has a high-quality leadership team that has delivered a proven growth strategy both organically and through strategic acquisitions. The business will continue to build on its scalable platform with the support of QPE. We look forward to seeing the accelerated growth of TelcoSwitch and wish them and QPE the best in this investment.”

Russell Lux, TelcoSwitch founder and CEO, said, “This is a hugely exciting time for everyone involved with TelcoSwitch. In under six years we’ve grown a successful channel business that continues to challenge the status quo in our industry with powerful products and services. The team at QPE share our energy and enthusiasm, and we’re delighted to have their long-term support in accelerating our strategy and ambitions. Alantra’s experience in unified communications was invaluable and it was great working with the team who supported us throughout this transaction.”

Nick Manning, Investing at QPE, added, “We are very excited to be supporting TelcoSwitch to build on the impressive growth the team have achieved in recent years. Their success is testament to both the quality of the underlying technology and the strength of the management team which has positioned TelcoSwitch perfectly to continue its exceptional growth story.”

TelcoSwitch’s executive management structure will remain unchanged following the investment, while Jonny Kay and Nick Manning from QPE will join the TelcoSwitch board of directors.

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