Esteem Systems is a specialist IT managed services provider serving mid-market businesses and the public sector.
Esteem began trading in 1985, initially as a seller of digital hardware equipment. By 2004 it had developed its service range to include consultancy, design, implementation and ongoing support of IT infrastructure. Esteem’s founder was looking to retire and Primary was approached by an experienced CEO looking for finance to support a management buy-in. Primary was the preferred partner and we completed a management buy-in in November 2004.
The Big Idea
We bought into and backed management team’s buy-and-build strategy to complete Esteem’s transformation to a full managed services provider. Esteem was seen as a good platform given its excellent customer relationships and its range of services.
The Grand Plan
Under our ownership the company has made two key acquisitions – Access Computing and SiRViS – which have increased its geographic and product base. The quality of earnings has been significantly enhanced by developing the managed service offering and building a larger recurring revenue base. In 2012 the business formalised its ‘Maintain, Transform, Manage’ concept, giving Esteem’s customers a full service offering.
The Bottom Line
Esteem’s profitability has more than doubled since the buy-out in 2004 and staff numbers have grown from 103 to 192 employees during the period.
Date of investment: November 2004
Deal status: Current
Company website: www.esteem.co.uk
For more information talk to: Rob Foreman or Peter Jacobs