Onecom secures £100m in funding
22 July 2019 | Natalie Bannerman
Onecom, a UK-based business telecoms provider, has been awarded a £100 million funding package from private equity firm LDC and credit funds managed by an affiliate of Ares Management Corporation.
The new funds will help support Onecom’s organic and acquisitive growth and specifically the investment from LDC will support CEO Ben Dowd’s significant growth plans that he has been working on with his management teams. Over the next three to five years, they expect to increase the workforce substantially, invest in systems and processes that ready the business for scale, and make acquisitions.
“I am delighted that LDC have backed the Onecom management team to pursue our growth strategy over the next few years,” said Dowd (pictured). “We have worked very closely with LDC over the last few months and they share the same level of ambition as we do. This investment will help accelerate Onecom’s growth organically and inorganically.”
To support the company’s ambitious growth plans, Onecom has announced Mark Thompson as its new chairman. Thompson formerly ran MDNX, which trading as Easynet, sold to Interoute for £402 million in 2015. Since then, he has successfully supported several boards, including G3 Comms.
Additionally, Darren Ridge, founder of Onecom remains significant a shareholder and becomes non-executive director.
“I am delighted that Darren will stay in the business as non-executive director,” continued Dowd. “His experience of Onecom and the market will be invaluable to me. The opportunities that exist for Onecom are significant both from a partnership and an acquisitive perspective. Onecom has a proven track record of delivering growth and this approach will now be super charged. The market is ripe for consolidation and Onecom can play a big role in this across mobile and fixed solutions where there is a huge number of resellers. I am very excited to work with LDC, Darren, Mark and of course my management team to deliver this growth over the next 3-5 years.”
The company says it is well-placed to take advantage of the opportunities presented through continued convergence in the communications sector and the expansion of digital infrastructure, including the rollout of 5G and superfast fibre.
“Onecom occupies a unique position in the business telecommunications market, offering a truly converged solution with the market’s leading operators and equipment manufacturers,” said Yann Souillard, Head of London, LDC. “What’s more, Ben and the management team have a clear vision and ambition for the business and a credible plan to deliver it. We’re excited to be part of that journey.”
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