3i has been investing in IT services companies for more than 20 years.  Our focus is on making Growth Capital and Buyouts investments in Europe.

The IT services sector is one where we’re able to add particular value because:

• Our offices in Asia support European businesses with operations in India and China.
• Much of 3i’s expertise in the business services sector is also relevant to IT services.
• Because we work with a number of IT services companies, we can help them work together to increase economies of scale e.g. through joint purchasing.

Two examples illustrate the strategies we use in our partnerships with IT services companies:

• Building scale through geographic and sector expansion.  When we first invested in Newell & Budge in 2001, it was a leading provider of consultancy and IT services in Scotland but needed to invest more in its English operations.  We helped the company to develop its business south of the border, introducing it to blue-chip financial clients and helping it to pursue a number of acquisitions.  As a result, profits doubled within three years.
• Helping a business to grow over the longer-term.  When we first backed Integralis in 1989, this UK company was a year old and had a turnover of just $0.5m.  Over the next decade, we helped it evolve into a leading international provider of information security solutions, setting up subsidiaries in France and Germany and establishing the MIMEsweeper range of products.  In 1998, Integralis spun off its Content Technology business, subsequently valued at $947m, while in 1999, Integralis merged with rival Articon to create a major pan-European player.