Helping Redsquid fund its acquisition strategy

The SME Debt Finance team at Triple Point specialises  in event driven transactions, which can refer to specific, significant and sometimes pivotal moments in a company's growth or change in structure that demand substantial financial resources. Such events can include business acquisitions, shareholder buyouts or acquisitions by private equity.

One such opportunity came in Q2 2023, when Triple Point started conversations with Redsquid, a managed service provider (MSP) offering a comprehensive suite of IT services to small and medium-sized enterprises (SMEs). Redsquid was co-founded by Sohin Raithatha and Vince Mignacca, who started out selling voice and data services from Vince’s spare bedroom before expanding their offering and embarking on an ambitious ‘buy and build’ strategy. Redsquid’s aim is to use technology to make its SME customers more efficient, increase productivity and reduce costs. Today, its growing customer base has access to a comprehensive IT offering, including Internet of Things (IoT), voice and data, cyber security, IT, and cloud services.

The partnership begins

The introduction came via a London-based corporate advisory firm called Altenberg Advisory. We learned that Redsquid was looking for support in refinancing an existing borrowing facility with a high street bank, as well as providing funding for twoplanned acquisitions. We spent two to three months getting to know the business, its founders and the wider team, including visiting its Borehamwood office. What was important for Redsquid was the cementing of a relationship with Triple Point that gave them confidence we would be able to introduce them to lending businesses capable of supporting their ongoing acquisition plans.

The MSP growth opportunity

One of the things that impressed us was the size of the market in which Redsquid operates, and how an acquisition strategy could help the company realise its growth ambitions. The MSP market is projected to grow significantly in the next few years, with factors like digital transformation, cloud adoption, and increased focus on cybersecurity as key drivers. Within the SME market, the growth potential of MSPs like Redsquid is huge. As more SMEs depend on technology to optimise and scale-up their business offering – while keeping costs to a minimum – businesses are outsourcing their IT services to MSPs, leading to a consistent demand regardless of broader economic conditions. Firms like Redsquid can become indispensable partners to SMEs, by offering start-of-the-art technology and delivering a cost-effective solution for businesses requiring high-quality IT services without the need for in-house teams.

A values-based company

For us, the partnership with Redsquid was all about alignment of values. Triple Point is B-Corp Certified and Redsquid became certified B-Corp in February 2024. We like to work with companies committed to making a positive and meaningful difference to their customers.

Just as importantly, Redsquid’s acquisition plans were strategic, focused and highly selective. They were keen to ensure the companies they acquired were the right cultural fit. Also, the team was seeking acquisitions that would expand the company’s reach in crucial areas of the education sector. Educational institutions are increasingly relying on technology for teaching, administration, and communication. This includes the use of learning management systems, digital classrooms, cloud services, and cybersecurity solutions. MSPs can provide the necessary expertise and resources to manage these technologies cost-effectively and securely, while also improving the overall educational experience.

Successful acquisitions

This due diligence gave us confidence in Redsquid’s operations and its acquisition plan, and we were able to complete on a lending facility in June which enabled it to refinance and to receive the funding it needed to support its acquisition strategy. We introduced Redsquid to our lending business, and its funding line meant Redsquid was able to build its presence in the education and public sectors with the acquisition of MSP Covue and communications provider Connect2. Redsquid is planning more acquisitions in the next few months as part of a long-term goal of reaching £50 million turnover and £10 million of EBITDA. We’re looking forward to supporting the team at Redsquid with the next exciting phase of their growth journey.

Why work with Triple Point’s Debt Finance team?

Companies like Redsquid choose to work with us because they recognise that in a highly competitive and fast-paced environment, experience in event-driven transactions can make all the difference.

Our collective understanding of the needs of the business, along with our commitment to preparing for and overcoming any potential obstacles in a timely fashion, are essential for ensuring the success of such deals. Our specialist expertise means we’re well-equipped to understand the complexities and the unique challenges that event-driven transactions can present, and introduce these businesses to our lending partners that offer the funding needed to support acquisitional growth.

Learn more about what Triple Point's Debt Finance team does here.

While Triple Point includes entities which are authorised and regulated by the Financial Conduct Authority, our Private Credit activities are not regulated activities in their own right.