Sale of IT Managed Service specialist Blue Chip Data Systems to GCI

Deal typeM&A
IndustryTechnology & Media

The BDO M&A technology team has acted as the exclusive adviser to the shareholders of Blue Chip Data Systems (“Blue Chip”) on their sale to GCI Managed Services (“GCI”). Established over 20 years ago Blue Chip are a highly regarded end-to-end fully managed IT managed services provider to large SMEs, enterprises and public sector organisations. They are based in Poole and currently employ c.180 people. Blue Chip’s IT managed services offering enables clients to outsource all their IT requirements, with key products including cloud and hosting; managed services with monitoring security capabilities; and infrastructure solutions.            

The business has demonstrated strong growth, with 10% EBITDA CAGR from FY13 to FY16 and an increase in recurring revenue from 29% to 51% (FY13-16) as the business invests in a successful migration towards IT managed services and automated services.           

Paul Russell, Partner at BDO said "We were delighted to have advised Blue Chip on their sale to GCI. Blue Chip are a great example of a company who have been successful in transitioning to a recurring managed services model. In GCI they have found a great home with significant cross selling and synergy potential.  The IT managed services market continues to be of high interest for trade and PE alike who are always on the lookout for high quality managed service specialists."  The transaction builds on BDO’s extensive expertise in the technology and IT managed service sector, having advised on deals in the past 2 years such as: The Bunker, ITC Secure Networking, Medium UK , Guestline, GSS and Selection Services.      

“The BDO tech team demonstrated excellent sector knowledge and deal experience to help maximise shareholder returns. They were involved in every step of the way and were invaluable in getting the deal done. It was a pleasure working with Paul and his team.”          

Richard Cook, Blue Chip, CEO