Gateshead-based IT company set to expand
Gateshead-based IT company, Advantex Network Solutions, is set to expand following investment from the Finance for Business North East Angel Fund.
The Fund, which is managed by Rivers Capital Partners, has invested a six figure sum into Advantex, in a deal advised by law firm Ward Hadaway.
Advantex provide IT services to schools and businesses, including clients such as Caterpillar, ScS and BT.
With the business planning to increase turnover by 20% this year, the Fund’s investment will enable the company to recruit more staff and help facilitate further growth.
Finance for Business North East invests in start-ups and existing businesses with growth potential in the region.
It forms part of the £125 million Finance for Business North East investment fund established to provide debt and equity funding to SMEs based in North East England.
Advantex will invest in new equipment including vehicles, building works to increase office space and IT infrastructure.
The business will also use some of the money to expand its hosted services offering, allowing it to host more clients’ services and hardware in its data centre.
In addition, the company is recruiting three new sales staff and four additional engineers and support staff to add to its current 40-strong workforce.
Corporate partner at Ward Hadaway, Imogen Holland, provided legal advice to Rivers Capital Partners on the investment in Advantex Network Solutions.
Ward Hadaway has previously advised Rivers Capital Partners on over 30 investments from the Finance for Business North East Angel Fund.
Imogen said: “We are delighted to have played our part in assisting Rivers Capital Partners on this investment from the Finance for Business North East Angel Fund.
“Advantex Network Solutions has a clear vision for its development and ambitious plans for further expansion in its key sectors.”
Sales and marketing director at Advantex, Stephen O’Connell, said: “We have seen a real acceleration in demand for our services so this investment has come at just the right time.
“In June for example we secured a £750,000 contract to provide new technology and managed services to 10 academies and colleges across the North East and we see the education sector as a key source of further growth for our business, in addition to providing managed systems for a range of businesses in the private sector.
“This investment will help us to fund that expansion as we look to grow our turnover to £4m and it also demonstrates that other organisations see the value and the potential in the work which we are doing.”