Activ secure six-figure investment to double workforce

Newcastle telecoms and technology outfit Activ has secured a six-figure investment and is now looking to double its workforce and turnover within the next year.

The Balliol Business Park-based firm have received the boost from regional fund management firm NEL Fund Managers, which administer the Growth Fund.

Support on the deal being provided by long-term business advisors UNW and law firm Muckle LLP.

Activ’s managing director, Michael Fitzpatrick, says: “Finalising a deal of this type is always about the people involved. The NEL team took the time to understand the business, and their professional, helpful approach, along with the strong support we received from UNW and Muckle, helped us manage the thorough investment process while staying properly focused on running the company.

“We’re confident that doubling both our 29-strong workforce to over 50, and our annual turnover in the next 12 months are realistic targets, and believe we now have the resources that will help us achieve these goals.

“Technology is continuing to converge - we now access the internet on our mobiles and make calls via the internet. Businesses need a single point of contact for their telephony and technology to make managing them far easier and more cost-effective for our clients and to ensure they are always connected.

“Our success has been based on building long-term relationships with clients, identifying which technologies they can deploy to meet their particular needs and providing them with tailored solutions that lead to direct business benefits.”

Founded by experienced industry professionals Ian Gillespie and Michael Fitzpatrick, Activ is already one of the region’s leading independent technology providers.

Well-known North East names among the firm’s customer base include Port Of Tyne, Northumbrian Water and Ringtons Tea.

Chris Parker, investment executive at NEL Fund Managers, added: “Activ’s management team are rightly ambitious about the company’s future prospects, and we are extremely pleased to have been able to provide the investment required to deliver their plans.”

UNW corporate finance senior manager Mark Simpson says: “Activ is recognised in the market as being the expert in mobile communications.

“The management team has recognised the trends in business technology and are ensuring the company has the necessary sales force and infrastructure in place to sell all these other technology products to their existing and new customers.

“This funding will allow them to press ahead with their ambitious plans into these different spaces, which is great news.”

Craig Swinhoe, a partner in Muckle LLP’s corporate team, adds: “We pride ourselves on strong relationships with our clients and have been with the Activ business from inception, having previously worked with Ian and Michael on other businesses. We very much appreciate the loyalty which Ian, Michael and the Gillespie family has shown to this firm.”

Aimed at regional businesses which are at a development and growth stage, the Growth Fund forms part of the wider Finance for Business North East Fund.

Managed by North East Finance, it will see £125 million of investment capital injected into the region by the European Investment Bank and the European Regional Development Fund (ERDF) 2007-13 over a five year period.

NEL is looking to make around 130 investments over the five year life span of the Growth Fund, and is actively looking to speak to ambitious North East companies with robust business plans.

For more information about NEL’s investment criteria, visit http://www.nel.co.uk/ or contact the investment team on 0845 111 1850.

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