Cloud infrastructure firm UKFast has agreed a £40 million fund from the Royal Bank of Scotland to build on its rapid organic growth.
The move signifies a clear commitment from tech entrepreneur Lawrence Jones to continue to build and “take UKFast to the next level”.
The Manchester-headquartered business, that supplies cloud and managed hosting to more than 5,000 customers all over the world, has reported double digit organic growth every year since its inception in 1999 and added more than £10m in recurring revenue in the last two years.
Now CEO Lawrence Jones plans to use the fund to accelerate UKFast’s growth alongside the purely organic model, bolting on new capabilities for his existing customers.
Jones said: “I’m incredibly proud of the way we are building UKFast. Our focus on customer service and the experience we provide helps us build lasting relationships with our clients.
“In a rapidly growing and competitive market, our clients know we are at the end of the phone whether it’s Christmas Day or 3 o’clock in the morning. We are an extension of their business.
“If you are growing a business organically, you have to hang on to your customers.
“I never want to lose this focus on customer care and at the same time, I am excited about the opportunity to make some acquisitions to help bolster growth and add capabilities and also grow our customer base.”
£30m of the fund will be drawn down immediately with the option to take a further £10m in future.
Jones, who has immediate plans for the money, continued: “We have a couple of businesses that we are interested in and I welcome anyone who has a business that might benefit from joining forces with UKFast to get in contact with us.
“There are fast-growing US organisations in our market with very deep pockets. We aren’t going to sit back and watch them take over.
“We know the areas our clients want us to develop in and we are responding to their demands.
“I want to be stretched as a business person and CEO, always looking to learn and develop.
“I have watched many businesses grow through acquisition in our space and I am excited by the challenges ahead.”
Stephen Lewis, regional director of corporate banking at Royal Bank of Scotland said: “UKFast is an ambitious, fast-growing business with a proven track record and a first-class management team.
“We are delighted to have been selected as UKFast’s sole relationship bank and recognise these are truly exciting times for the tech sector in which it operates.
“We look forward to building a broad-based banking relationship and supporting Lawrence and his team as they execute their medium-term strategy.”
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