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A Fife-based managed IT services business which specialises in the implementation, improvement and maintenance of IT services, telecommunications, data protection and cloud migration, has capitalised on the changing digital landscape of the last 12 months by securing a £3m investment from alternative lender BOOST&Co.
Established in 2014 by director Ian Maclellan, Cloudstream Technology has grown quickly in just a few short years through a deliberate acquisition strategy that has unified nine separate entities, growing the firm’s customer base to more than 1000.
Offering customers everything from disaster recovery, to cloud migration and telecommunication infrastructure, Maclellan’s shrewd acquisition strategy has enabled the business to strengthen and diversify its proposition, with the added advantage of consolidating group functions and driving growth through cross-selling.
Now Cloudstream will use a £3m CBILS loan to implement a similar consolidation strategy to the firm’s existing debt.
“BOOST&Co is keen to promote the benefits of using the CBILS scheme to refinance existing debt and this deal is a great example of exactly that,” says Ryan Sorby, principal at BOOST&Co and head of the lender’s North West office. “By using the new product to consolidate several loans, Ian and his team can concentrate on what matters; acquiring new customers and growing the business.”
“It was refreshing that Ryan and his team completely understood the Cloudstream proposition from the outset and could see how a CIBLS facility would transform the future operating landscape of the business”, says Maclellan. “By freeing up management time spent juggling multiple short term credit lines, we are now able to focus on growth and building strategic value. I cannot commend the team at BOOST&Co highly enough.”
The funding has also enabled Cloudstream to recruit a new finance director, who will support the continued integration of the acquired entities. By streamlining business functions and offices, Cloudstream will invest in areas of the business that will enable it to better support customers, ultimately promoting growth.
“We know that acquisition is a proven growth strategy and that Cloudstream is operating in a very hot sector,” says Sorby. “Not only is there a strong demand for its services, but Cloudstream is able to provide excellent revenue visibility and demonstrate strong profit margins compared to peers in the sector.”
“We have a strong working relationship with BOOST&Co and are delighted to have supported its debt funding facility for Cloudstream,” says David Middleton at Knight Corporate Finance, the due diligence providers for this deal. “We look forward to seeing the team at Cloudstream prosper through 2021.”
“David also deserves a special mention,” says Maclellan. “He completed the separate associated due diligence exercise in a very professional and thorough manner. In closing, I would like to emphasise that I have great confidence in recommending BOOST&Co as a lending partner of choice to any business.”