Beech Tree Private Equity (‘BTPE’) is pleased to announce its investment in Arc Systems (‘Arc’, ‘Business’ or ‘Company’), a fast-growing provider of Cloud and IT managed service solutions to UK businesses. This investment marks a significant milestone for the Company, as it will provide the Business with significant investment to continue its growth trajectory and scale up rapidly in this highly fragmented market.
Founded by James Clayden in 1992, Arc Systems is headquartered in Basildon, Essex, and primarily operates in and around London and the South-East. The Business offers a range of services including IT support, Public and Private cloud solutions, security and back-up to UK SME and mid-market corporates.
With a strong track record of successful investments in the sector including Transparity, Ancoris, and BCN (recently exited in June 2022), BTPE is well-positioned to support Arc in replicating its successes. The investment will enable the Business to expand its capabilities (most notably across the Microsoft Stack), with a special emphasis on its people and technical excellence, and strengthen its position as a leading provider of cloud and IT managed service solutions in the UK.
The global IT managed services market continues to grow, with the UK market still the largest in Europe, underpinned by growth in SME and mid-market businesses who are attracted to the benefits ofcloud computing and addressing an IT skills shortage, encouraging more businesses to outsource their IT requirements.
Commenting on the transaction, James Clayden, CEO & Founder of Arc, said: "We are delighted to have secured this investment from Beech Tree Private Equity. We were immediately aligned with them culturally, and their experience in the sector and track record of successful investments makes them the perfect partner to support us in achieving our growth plans. We have experienced strong growth in the last few years and this investment will allow us to better support our customers, partners and people as we grow with them."
Adam Rudd, Partner of Beech Tree, added: "We are excited to be partnering with Arc and investing further into a sector that we know well. The strong relationships they have with their customers is a testament to how Arc delivers fantastic outcomes and support to mission-critical solutions for their customers. We are looking forward to supporting the Arc management team on an ambitious growth strategy.”