Mitie acquires majority stake in Source8
Bristol-headquartered outsourcing company Mitie has taken a majority stake in a London real estate, technology and risk management consultancy in a deal worth up to £15.5m.
Source8, which had turnover of £4.5m in 2013, provides its services to global corporations, with particular expertise in emerging markets and complex environments.
Mitie said the business brought strong growth potential and consulting capabilities in the UK and overseas.
The transaction consists of a maximum initial payment of £2.95m, with £2.5m paid in cash on completion, and the remainder payable dependent on performance targets. A further potential £12.5m may be paid over the next five year if more targets are met.
Mitie chief executive Ruby McGregor-Smith said: "We are delighted to have acquired a majority shareholding in Source8. This acquisition will enable us to significantly build upon our consultancy services offering and complement the services we already provide for our clients."
Source8 was founded by Simon Venn and Chris Rowley, who hold the position of joint managing director.
Mitie pushed revenue in the first half to past the £1bn-mark driven by "strong" organic growth in its facilities management division. But the company is expecting a series of exits from loss-making businesses, which should complete before the end of the year, to lead to losses of up to £15m.
Corporate finance firm BCMS managed the sales process, lead by Mark Lucas.