YFM Equity Partners have sold their interest in UK space systems engineering consultancy e2E Group, representing a 2.5x return for investors.

The sale to Telespazio UK, a subsidiary of Telespazio, will enable e2E to pursue further growth at the forefront of the space industry.

Since investing in e2E in 2017, YFM has helped the business to consolidate its unique market position and bolster its technical skillset.

e2E, which has offices in Gateshead and Welwyn Garden City, has achieved strong revenue growth, delivering high calibre, bespoke engineering and space focused software development support to the satellite communications industry.

Barry Ross, e2E Founder and CEO said: “We have positioned our business for exceptional growth, so that we can enter this exciting next phase with an outstanding talent pipeline, clear strategic focus and industry-leading reputation for innovation.

“We now look forward to developing our service offering further and expanding into  new markets, with the backing of Telespazio UK.”

Andy Thomas, YFM Partner added: “We are delighted to see the goals of this exceptional and ambitious business realised and to have secured a strong return for our investors via the sale to Telespazio UK – the perfect strategic acquirer for e2E.

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“We are certain that its reputation for quality, unmatched skills and R&D investment will enable it to achieve further growth and market penetration with Telespazio.”

Telespazio UK has over 45 years of heritage in the UK marketplace, and it has a track record of success delivering systems, services and engineering support to the European Space Agency (ESA), European Centre for Medium-Range Weather Forecasts (ECMWF), space primes, and national civil and defence agencies.

Telespazio UK space domain expertise spans earth observation / geo information / science exploration data systems, resilient navigation & timing, space domain awareness, civil / defence ground segment, and downstream applications & climate services.

The consultancy’s clients include Inmarsat, OneWeb and the Ministry of Defence (MoD), where it acts as a key consortia member of the MoD’s client-side support partner team on the multi-billion-pound Skynet 6 (SK6) Military Satellite Communications Programme.

Having been successful in delivering its services to the satellite communications sector since 1999, e2E is now looking to diversify into other related sectors.

Legal advisers to the shareholders were Walker Morris (led by Tim Jackson-Smith). Sell-side CF advisors were LAVA Advisory Partners (Simon Woodcock, Hamish Martin, and Tom Rowe-Jones).

Tom Rowe-Jones, director at LAVA, said: “It has been a pleasure working with Barry, his team, and YFM. e2E’s bespoke technical capabilities, client-focused approach, and collaborative culture have positioned it at the forefront of the satellite communications market.

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“We can’t wait to watch as it goes from strength to strength. In joining Telespazio UK, the business has found the perfect complementary partner for growth and will ensure the business thrives as it seeks to enter new markets.”

YFM invests £2m to £10m into businesses with strong growth potential located across the UK through a regional network of offices in London, Leeds, Manchester, Reading and Birmingham.