IT firm, eacs, prepares for growth post-Covid
Shawbrook Bank, the specialist SME lender, provided eacs with a multi-million pound senior cashflow loan facility for an undisclosed sum.
Kevin Timms, CEO of eacs Ltd, said: “We are absolutely delighted to have been able to refinance the business in what is one of the most turbulent economic climates we have seen in our lifetime.
“There has been much anecdotal evidence that the current COVID-19 crisis has driven digital change and this has certainly been our experience as we went through this process.
“But we did so, and that is illustrative not only of the grip and understanding we and our advisors have on the business, but also because we are in a sector that is demonstrating a degree of resilience.
“Before the coronavirus outbreak, many businesses had little interest in exploring video conferencing, remote working at scale or attending a virtual event. Allowing every employee to work from home for once a week was also unthinkable.
“Today, many are now beginning to see the art of the possible and explore new ways of working and thinking and we are helping those businesses digitally transform at speed.”
Mr Timms added: “Throughout the pandemic, there has been reduced activity from banks regarding their ability – and in some cases willingness – to lend.
“However, despite the difficulties of the current Covid situation, Shawbrook delivered the funding we were looking for and stood by the commitments they’d made.
“We knew Shawbrook had the sector experience, so they clearly understood the dynamics of our business, but they also recognised the opportunities that await us post-pandemic. We’re very happy to be working with a lender that has bought into our plans and is willing to back our future growth.”
Adam Agius at Shawbrook Bank said: “eacs is an established business, which is being steered successfully by its highly experienced management team.
“They offer a business-critical service which helps their clients remain resilient and operational in the face of external pressures – and this is clearly evident now more than ever as we see the impact that Coronavirus has had on businesses across the UK and indeed the globe.
“This transaction demonstrates that we’re committed to deliver, even more so in these testing times, and we are delighted to be working alongside Kevin and the team. As a bank we have experience in funding IT specialists and look forward to supporting strong businesses in this sector.”
Shawbrook was introduced to this project by Knight Corporate Finance, the corporate advisory firm specialising in technology and telecoms.
Adam Zoldan from Knight Corporate Finance said: “All credit to eacs management team who were able to deliver at the most challenging of times for a fund-raise and I am sure the IT Services industry as a whole will take heart from this success story. eacs has proven to be extremely robust during the pandemic and many will recognise the impact made by eacs and its peers in keeping the UK open for business and able to adapt to the new normal. Our view is that a combination of strong cash generation and growth prospects will ensure that funding will be available and value creation prospects will remain strong for some time.”
Financial due diligence was performed by Moore Kingston Smith. Shawbrook’s legal advisors were Pinsent Masons LLP.
