Maven VCTs invest in fibre networks provider ITS Technology Group
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Maven Capital Partners, manager of the Maven VCTs, has invested £2.25 million in ITS Technology Group – its eighth Venture Capital Trust investment in the past 12 months.
The Cheshire-based company is an altnet (alternative network) operator – it provides its own fibre-based broadband internet infrastructure, not dependent on the BT OpenReach network. It provides internet connectivity, VoIP telephony and managed IT services to businesses, particularly in locations not well served by the main public networks. It specialises in supplying the SME market.
ITS currently operates networks in Manchester, Nottingham, Derby, the Bristol area, Hereford, North Wales, Liverpool & Knowsley, and Hammersmith & Fulham. Maven VCTs’ investment will be used to expand the company’s fibre network to new locations, as well as to boost sales and operational capabilities.
One of ITS Technology Group’s strengths to date has been its ability to secure exclusive concession agreements with local authorities to commercialise the spare capacity of their existing data ducting – in other words, the physical infrastructure that allow fibre optics cables to be laid. These agreements are considered a win-win because they allow ITS to rapidly deploy its networks with minimal disruption to the local area, while generating funds for the local authority through a revenue sharing model.
Ryan Bevington is an Investment Director at Maven. He commented: “ITS is a scalable business with recurring revenues, a strong presence in a high-growth market and an experienced management team capable of driving the business forward”.
The founder of ITS, Roy Shelton, said: “The Maven team immediately demonstrated an understanding of the wider market and how our business model is well-placed to take advantage of these opportunities. This investment from Maven will enable ITS to scale our fibre networks which are becoming increasingly important for the effective delivery of faster, more resilient, and secure broadband connections.”
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