Foresight Group has invested in VS Group, a Lancashire provider of IT and cyber security services to businesses and charities.
VS Group was founded in 2012 by managing director Kevin Penman and co-director Jason Savion, who both have more than a decade of experience in the telco and technology marketplace.
As part of the investment, the first from Foresight’s third SME fund dedicated to the North West, VS Group has acquired established Liverpool-based IT managed services provider The PC Support Group for an undisclosed sum.
The deal will boost customer numbers at the enlarged group by more than 200 and will be the first of a number of bolt-on deals VS Group will make over the investment period.
To support VS Group’s leadership team as they scale the business, Foresight has introduced experienced IT services executive Iain O’Kane to the business as chair.
As CEO of IT, cyber and business applications provider Xperience Group, O’Kane successfully grew the business to £25m revenue before attracting investment from private equity firm Bowmark Capital.
Remaining as CEO until May 2024, he now supports Xperience in a non-executive role.
Sophie Clough, investment manager at Foresight in Manchester, said: “VS Group is a great example of a founder-led regional business with lots of growth potential and we are delighted to be working with Kevin and Jason, alongside both the VS Group and The PC Support Group teams, on the next stage of their growth journey.
“The need for every business with people working flexibly to have secure IT networks and strong cyber security has never been higher, so we are investing in a growing and highly resilient sector.
“The marketplace is highly fragmented and we are keen to support VS Group’s organic growth with further strategic acquisitions across the North and Midlands.”
Kevin Penman and Jason Savion, co-founders at VS Group, added: “We are thrilled to be working with Foresight Group, an investor that shares our passion and ambition for growth.
“We are equally pleased to welcome The PC Support Group team and their clients to VS Group. Like us, the team are delivering an excellent service to their clients across a wide range of sectors and we look forward to working with them moving forward.”
Fund’s third investment
The investment in VS Group is the first transaction from the investor’s third dedicated North West fund.
Since the first regional fund for the North West was raised in 2015, Foresight has backed more than 30 companies in Greater Manchester, Merseyside, Cheshire, Lancashire and North Wales, helping to create more than 2,000 jobs.
The latest fund is backed by Greater Manchester Pension Fund, Clwyd Pension Fund and Merseyside Pension Fund, and provides flexible equity investments of up to £15m into companies in all sectors.
Foresight is the UK and Ireland’s leading investor in growing companies.