Advantex eyes growth after management buyout

A North East technology services provider is entering a new phase of growth after securing backing to support a change in ownership and future expansion.

Gateshead-based Advantex has completed a management buyout following a seven-figure investment from NPIF II – NEL Debt Finance, part of the Northern Powerhouse Investment Fund II (NPIF II). 

The funding has enabled the planned exit of one of the company’s founding brothers and leaves the firm under the leadership of managing director and remaining founder David O’Connell.

Established more than 20 years ago, Advantex provides IT, cybersecurity and communications services to organisations across the UK. 

Bosses say the investment will support Advantex’s next stage of development, including further team growth, continued investment in accredited capabilities and the expansion of its national customer base. 

The transaction was completed with support from FRP Advisory and Mincoffs Solicitors.

David said: “NEL were very efficient and provided a great customer experience, quickly understanding our needs and shaping their offering to fit.

“Securing the required funding in a timely manner has given Advantex the ability to focus fully on our growth strategy and capitalise on the opportunities ahead.”

The funding round was led by Jane Siddle, senior investment executive at Gateshead-headquartered NEL Fund Managers, which achieved a record year of investments in 2025.

She added: “It has been a pleasure working collaboratively with David, the senior management team and FRP Advisory on this funding. 

“The process demonstrated the real value of strong advisor partnerships and a management team with clear strategic plans, a compelling value proposition and a technology-enabled business model. 

“Advantex operates in a sector where organisations increasingly rely on innovative, secure and connected technology solutions, and the business is well positioned to meet that demand. 

“NEL looks forward to supporting Advantex beyond the investment, working closely with the team to help deliver its growth ambitions and capitalise on the opportunities ahead.”

The £660 million NPIF II fund, operated by British Business Bank, provides loans from £25,000 to £2 million and equity investment up to £5 million to help small and medium-sized businesses.

Sarah Newbould, senior investment manager at British Business Bank, added: “Advantex is a strong example of the innovative, technology-led businesses we are supporting through NPIF II.

“By unlocking growth in sectors aligned with the Government’s Industrial Strategy and strengthening the North East’s ability to compete nationally through technology innovation, investments like this help drive sustainable growth across the region.”

Find out more about NEL Fund Managers, its evolution over the past eighteen months and its future ambitions in our recent interview with chief executive Paul Scott, here. 

You can also read our interview with James Katirai and find out more about NEL's commitment to supporting SME growth throughout the North East in our sister publication, N, here.

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