Tech firm eyes growth after management buyout

A family-founded technology firm says it is in a “prime position to accelerate growth” after a management buyout. 

Advantex has unveiled plans to create engineering, sales and operations jobs.

The blueprint comes after the business was officially taken on by managing director Dave O’Connell following brother Steve’s decision to step back from the Gateshead-based company.

Founded by the O’Connell siblings in 2002, Advantex provides IT, communications and security support to manufacturers, education providers, local authorities and hospitality operators.

Employing 70 staff, its clients include Newcastle International Airport, Caterpillar and Hitachi.

Hailing the potential of the buyout, Dave said it will “secure leadership continuity… and help maintain confidence among employees, customers and other key stakeholders”.

He said: “We’ve built Advantex on the foundations of technical excellence and an unwavering commitment to customers’ success.

“As we move forward, we’re in a prime position to accelerate our growth plans with a robust pipeline of contracts, strong financial performance and a talented team that shares our vision for innovation and service excellence.”

The buyout – which saw Dave buy Steve’s shares in the business – was supported by FRP Corporate Finance. 

Led by partner Abu Ali, Newcastle-based FRP Corporate Finance valued the business before structuring a deal.  

Dave said: “The support provided by Abu and the team at FRP Corporate Finance was second-to-none.

“Their depth of knowledge and clear advice played a key role in getting this transaction over the line.”

Abu added: “Advantex is a fantastic example of the scalable, innovative technology firms that are thriving in the North East.

“With strong investor interest and healthy performance, it’s an exciting time for the business under Dave’s leadership.”

RMT, Swinburne Maddison, Square One Law and RSM also advised on the deal.

Want your business, product or service to be seen regionally and nationally? Bdaily helps you get your story in front of the right audience, every day. Find out how Bdaily can help →

Join more than 55,000 subscribers by signing up to our daily bulletin each morning here.