Advania, a prominent provider of IT services in Northern Europe and backed by Goldman Sachs Alternatives, has announced its acquisition of CCS Media, a leading independent IT solutions provider based in the United Kingdom. This strategic move is aimed at bolstering Advania's growth and expanding its service offerings within the UK market, further solidifying its position as a key player in the IT services sector.

Strengthening Market Presence

The acquisition of CCS Media aligns with Advania’s strategic objective of enhancing its footprint and capabilities in the UK. With CCS Media's expertise and strong market presence, the combined entity will be able to deliver a more comprehensive and innovative approach to IT services, especially for midmarket customers who have been seeking robust solutions from established providers. This transaction is not just a financial investment; it represents a significant milestone in Advania's ambition to emerge as the leading IT services provider in Northern Europe.

Details of the Acquisition

Under the terms of the agreement, Advania will acquire 100% of the shares in CCS Media from its management and employees. The transaction is expected to close in the fourth quarter of 2024, pending regulatory approvals. The integration of CCS Media, along with the recent acquisition of Servium in the UK, is set to enhance Advania’s operational scale, enabling the company to provide a differentiated, end-to-end suite of IT solutions and services across the UK.

With a reported revenue of £280 million (approximately SEK 3.8 billion), CCS Media is recognized for its rapid growth and extensive portfolio of IT products and services. Advania's combined revenue post-acquisition is anticipated to reach SEK 19 billion (around £1.4 billion), with a workforce of over 5,000 employees across Northern Europe.

Enhancing Customer Offerings

Advania’s strategic positioning as one of Microsoft's top partners allows it to offer market-leading capabilities to CCS Media’s clientele in an integrated manner. Following the acquisition, Advania UK will employ over 1,500 individuals across more than 20 locations. This expansion will facilitate innovative solutions and flexible procurement options that were once available only to the largest enterprises.

The acquisition aims to provide new and existing customers with access to a deep pool of expertise in IT services. Clients will be able to optimize their business processes, streamline spending, and secure their operations through a single service provider. Advania UK's exceptional partnership with Microsoft—marked by numerous designations and certifications—combined with CCS Media's proficiency in a wide array of technology products, creates a compelling portfolio for digital transformation.

Voices from Leadership

Hege Støre, Group CEO of Advania, expressed her enthusiasm about the acquisition, stating, "I’m very excited to have CCS Media join forces with Advania. CCS has a strong and proven track record of growth, customer relationships, and delivering cutting-edge IT solutions across the UK market. Together with the Advania UK operation, we are certain that this investment will further accelerate our growth and elevate our position in the UK market.”

Terry Betts, CEO of CCS Media, echoed this sentiment, emphasizing the mutual benefits of the partnership. He noted, "The CCS Media Leadership Team is immensely excited to unite forces with Advania and extend an even greater depth of expertise and services to our loyal customers across the UK. The transaction will hugely accelerate our trajectory in developing more comprehensive solutions for our customers. Like Advania, people are at the heart of our business, and our shared culture and customer-centric approach were key drivers in progressing this deal."

Support from Investment Partners

Goldman Sachs Alternatives, a leading investor in alternative assets, also expressed its support for the acquisition. Michael Bruun, Global Co-Head of Private Equity at Goldman Sachs Alternatives, stated, “We and our co-investment partners are very pleased to welcome CCS Media into the fast-growing Advania platform and to support the company in further scaling Advania’s operations and offering. The acquisition will create a differentiated and highly compelling end-to-end proposition for the UK market.”

Advania's acquisition of CCS Media marks a significant step towards achieving its goal of becoming the leading IT services provider in Northern Europe. With an expanded portfolio of solutions and a stronger workforce, Advania is well-positioned to meet the evolving demands of its customers in the UK market. This acquisition not only reinforces Advania's commitment to delivering innovative IT solutions but also highlights the company's dedication to fostering long-lasting relationships and creating sustainable value in the technology landscape.