Alantra advises MML Capital on investment into Arrow

Jan 2020

Buy-side advisory

Alantra, the independent, global mid-market investment banking and alternative asset management and credit portfolio advisory firm, has advised MML Capital Partners (“MML”) on its investment into Arrow Business Communications (“Arrow”), a provider of business communication and IT services.  MML has invested alongside founder and Chairman Chris Russell and CEO Richard Burke. The deal builds on the Alantra team’s track record in the B2B communications segment and comes shortly after LDC’s acquisition of Onecom, also advised by Alantra.

Arrow is a leading provider of business-critical services to UK SMEs and mid-market customers, including mobile, fixed line, hosted telephony, data, IT and energy solutions.  The business now employs 245 people across its nine UK offices, servicing over 5,000 customers. It is based in Godalming, Surrey.

MML’s investment will support Arrow through its next phase of growth and transformation. With the significant funding firepower of a new £50m acquisition facility, Arrow intends to progress its ambitious growth plans as a leading buy and build platform in the ICT and energy services markets.  The Company will also continue to expand its product range and technical capabilities to meet market needs.

James Chapman-Andrews, Partner at Alantra leading the UK TMT sector team, said: “We are delighted to have worked with MML and the shareholders of Arrow.  In MML, Arrow has found a highly supportive and experienced investment partner that is well placed to help it achieves its growth ambitions.  As advisors, we are seeing a strong pipeline of deals involving UK-based B2B communications service providers and expect to see an increase in the number of M&A deals in this space during the months ahead.”

Richard Burke, CEO of Arrow, said: “MML is the right partner to complement the existing Arrow team and we look forward to working with them to continue our growth.”

Luke Jones, Partner at MML said, “We are delighted to be partnering with Arrow in its next phase of growth. Arrow’s market leading customer service and unique product portfolio provides a differentiated offering for its customers, which is supported by its exceptional company culture. Chris, Richard and the rest of the team have delivered strong growth and we are backing them to do more of the same”.