The proprietor of one of Britain's largest managed cloud service firms, Nasstar, is reportedly considering the sale of the company, seeking a deal worth over £500 million ($589 million).
According to sources, Mayfair Equity Partners has appointed investment bankers to put up an analysis of Nasstar's strategic options.
Sources suggest that Raymond James had been chosen to supervise the review on Sunday.
The sale process is likely to begin next year and might interest potential strategic buyers as well as financial investors.
For business and government sector clients, Nasstar develops, deploys, and operates hybrid connected multi-cloud solutions as well as communication platforms.
Some of the clients include the NHS, Eurostar, EE, as well as the UK Ministry of Defense.
According to close company sources, the company has played an essential part in clients' transition to digital operations as they shift towards a hybrid working model.
Estimations suggest that the market for public cloud computing is already worth nearly $370 billion and is anticipated to expand quickly through the end of the decade.
In 2021, Nasstar reported a revenue of £114 million ($136 million) and a profit of £22.1 million ($26.4 million) before interest, tax, amortization, and depreciation. The figure has nearly doubled since the year prior, attributed to a series of acquisitions and the introduction of new services.
Mayfair made its initial investment in Nasstar in 2018. The company spearheaded a management takeover of GCI Group from the bank-backed Business Growth Fund and chairman Wayne Martin.
Since then, it has expanded to offer a broader range of technological services, taking over Modality in 2019, followed by Nasstar in 2020, and KCOM's national ICT Services division in 2021.
Former Easynet Group CEO, Wayne Churchill, joined Nasstar two years back, intending to lead its way through digital transformation.
The company now employs over 1000 people.
Mayfair is now preparing to sell Nasstar following a flurry of industry-wide transactions. These include the £675 million ($808 million) Version1 sale to Partners Group and the nearly £300 million ($359 million) worth of acquisition of Node4 by Providence Equity Partners.
Source credit: https://news.sky.com/story/nasstar-owner-prepares-500m-sale-of-cloud-services-provider-12653915