Nasstar owner prepares for £500m sale of cloud service provider | business news
The owner of one of the UK’s largest providers of managed cloud services will begin considering a sale of the company worth over £500m.
Sky News understands Mayfair Equity Partners has hired investment bankers to prepare for a review of strategic options for Nasstar.
City sources said Sunday that Raymond James has been hired to oversee the review.
A sale process is expected to take place over the next year, with interest expected from strategic buyers and financial investors.
Nasstar designs, implements and manages hybrid connected multi-cloud solutions and communications platforms for enterprise and public sector clients.
Customers include Eurostar, the NHS, EE and the Ministry of Defence.
People close to the company say it has played an important role in customers’ transition to digitally-led operations as they adapt to hybrid remote work.
It is estimated that the global public cloud computing market is worth nearly $370 billion and is expected to grow rapidly through the end of the decade.
Last year Nasstar reported £114m in revenue and £22.1m in profit before interest, tax, depreciation and amortization, the latter almost doubling year-on-year – fueled by a series of acquisitions and the launch of additional services.
Mayfair’s original investment in the group, now called Nastar, came in 2018 when the private equity firm was leading a management buyout of GCI Group by chairman Wayne Martin and the bank-backed Business Growth Fund.
Since then, the company has evolved into a broader technology services provider, buying Modality in 2019, Nasstar the following year, and KCOM’s national ICT services business in 2021.
Two years ago, Wayne Churchill, a former Easynet Group executive, joined Nasstar to lead its transformation.
The company now employs more than 1,000 people.
Mayfair’s preparations for a sale of Nastar follow a series of deals in the broader industry, including the sale of Version1 to Partners Group for £675m and the acquisition of Node4 by Providence Equity Partners for around £300m.
A Mayfair spokesman declined to comment.