Gambit Advises on Pinnacle Telecom Management Buy-out

Gambit Corporate Finance LLP has acted as lead advisor on the management buy-out of Pinnacle Telecom (Wales), for an undisclosed sum. Institutional funding was provided by Finance Wales, alongside a significant investment by Dean Stewart, Pinnacle’s Managing Director.

Founded in 1996 by its former Chairman, Ian Ryley, and Dean Stewart , Pinnacle is a communications specialist, providing telecoms services to SMEs and public sector organisations, operating from a head office in Cardiff. Pinnacle’s telecoms services include IP Telephony, hosted telephony, internet access and data networking solutions, mobile and landline solutions.

The management buy-out was led by Dean Stewart, who has been Managing Director of Pinnacle for 18 years. Gambit’s team, which has significant experience in the TMT sector, was led by Geraint Rowe and Simon Williams. This transaction follows the £13 million sale of eLINIA to Adapt Group, and raising development capital for QPC Group.

Dean Stewart, Pinnacle’s Managing Director, commented “We have ambitious growth plans as a business. With the launch of recent new services, including hosting and a wholesale mobile proposition we are able to deliver an integrated and unified communications platform. I am confident about the long-term growth opportunity this provides, and am very pleased that we have an institutional investor in Finance Wales that shares this vision“

Geraint Rowe, Partner at Gambit, commented, “Pinnacle has an excellent market position, arising from its long history in this sector, combined with its high level of customer retention. The business is very well positioned to enhance its market leading telecoms solutions to its clients.”

Simon Williams, Director at Gambit, commented “The transaction further highlights Gambit’s experience and focus on the TMT sector. It also demonstrates the trend for telecoms providers to broaden their service offering towards IT solutions.“

Chris Griffiths, New Investments Fund Manager at Finance Wales believes that supporting management succession is critical to the future success of the Welsh economy.  “Wales is home to a significant number of owner-managed businesses, so management succession is an important and growing challenge for the Welsh economy.  We’re delighted to include Pinnacle in Finance Wales’ management buy-out portfolio and hope investments like this will inspire the next generation of Welsh business owners.”

Investment Executive, Cenydd Rowlands structured Finance Wales’ investment in Pinnacle.  He added: “Pinnacle has evolved to offer a broad product range that includes some highly technical solutions for its customers.  This has enabled the company to achieve a high level of customer loyalty. We’re pleased to back Pinnacle’s management team as they implement their ambitious growth plans.

Greenaway Scott acted as legal advisors to the management buy-out team.

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