Moore Kingston Smith advises Mode Solutions acquisition of eacs

13 July 2022 / Insight posted in Article

Moore Kingston Smith has advised Mode Solutions Limited, a leading print and communications business, on its acquisition of IT managed services company eacs.

Mode, backed by private equity firm Connection Capital, provides managed print and communication services to UK SMEs. Acquiring eacs, an award-winning IT managed services provider, boosts Mode’s existing IT services offering, helping it become a one-stop shop for SMEs and their evolving technology requirements. The IT services sector has seen significant organic growth, with lockdown accelerating the need for home-working and cloud solutions. Acquiring eacs will capitalise on this growth potential and the increased demand for IT services.

This is Mode’s second acquisition, having acquired Nix Communications Group in 2019.

Moore Kingston Smith has a long-standing relationship with Connection Capital who approached the firm to assist with its platform investment. Nick Thompson, Kat Stone, Adele Hebditch and Henry Waugh from the firm’s corporate finance team carried out target acquisition search services, utilising the team’s extensive expertise and knowledge of the IT managed services sector to identify eacs as a suitable target. The team also conducted due diligence on the target and provided full buy-side support, including advising on negotiations around key deal considerations. They were supported by Tom Acland from the M&A tax team who provided tax due diligence and extensive tax and structuring advice to Mode.

As part of the transaction, the Mode group refinanced with BlackRock and engaged the team to carry out due diligence services for the refinance of the combined group. The team involved included Nick Thompson, Kat Stone, George Hatswell, Nathalie Strauss and Matthew Edwards.

Alex Tupman, Chief Executive Officer at Mode Solutions, commented: “An acquisition of this size and quality further demonstrates our growth ambitions to offer a full trifecta of digital services to UK businesses from a single source. The Moore Kingston Smith corporate finance team fully understood our goals and pulled out all the stops to support us in achieving them. They were flexible, adaptable, very communicative and highly professional throughout the entire acquisition process, and I wouldn’t hesitate to work with them again.”

Mark Snaith, Investment Director at Connection Capital, added: “The acquisition of eacs is transformational for Mode and a real statement of intent as it executes on its buy and build strategy. Connection Capital focuses heavily on adding value to the businesses it chooses to partner with and it is important that we work with like-minded advisers who actively consider the bigger picture in applying sound commercial judgement throughout the transaction processes. As such, it has been a pleasure working with the Moore Kingston Smith team who consistently delivered to achieve an excellent outcome – I look forward to working with them again in future.”

Nick Thompson, Corporate Finance Partner at Moore Kingston Smith, commented: “We are delighted to have assisted the Mode management team and Connection Capital in acquiring eacs as they further enhance their IT services offering. The transaction represents a significant step towards Mode’s ambition of becoming the leading full-service provider of IT managed services to UK SMEs. We look forward to following them on their growth journey.”