Souter Investments has reached agreement to sell Stone Technologies Group to Canadian software solutions provider Converge Technology Solutions.
The private equity focussed family investment office acquired a majority stake in the circular IT solutions firm during 2019, investing alongside the management team and a syndicate of investors managed by private equity house RJD Partners.
Since acquisition, Stone has expanded its range of products, services and solutions. This includes the roll out of an IT recycling app, which makes management of end-of-life technology simple and ensures responsible e-waste disposal.
Stone chief executive Simon Harbridge commented: “It has been a pleasure to work with Sir Brian, John and the Souter team, as well as David MacLellan and RJD Partners.
“The emergence of Covid on the heels of Souter’s investment confirmed our decision to partner with them, with pragmatic advice and considered support the norm, allowing us to focus on our successful growth and transformation strategy.”
Serving the UK’s public and private sectors for over 30 years, Stone assists thousands of organisations with IT support and sustainability.
John Berthinussen, managing director at Souter Investments, said: “Stone has grown very strongly, marrying a focus on providing truly innovative and market leading products, services, and solutions with outstanding customer service, all things that resonate with its clients.
“We look forward to seeing that continue in partnership with Converge and wish Simon and his team every success in the future.”
The deal follows Souter’s recent sale of Duke Street-backed specialist care provider Voyage Care to infrastructure investment manager Wren House, as well as the initial public offering of Ashtead Technologies; a co-investment with Buckthorn Partners.
In addition, Souter has added Bulgarian e-bike producer Leader and student recruitment specialist SI-UK to its portfolio.
The Stone transaction remains subject to regulatory approval.
Lincoln International are acting as financial advisers for Stone’s shareholders. Dickson Minto are legal advisers for Souter Investments and RJD Partners, with Freeths representing the company's management.
Founded in 2006, Souter has invested over £500m in more than 70 unquoted companies, and currently has significant investments in more than 35 businesses, acting either as the lead investor or as a partner for other financial sponsors.
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