Funding set to accelerate IP Telecom’s organic and acquisition growth with intention to drive annual revenues from €6 million to €11 million in FY2024.
Today, 23rd August 2023, IP Telecom is delighted to announce that it has secured a €6 Million investment in the company by Irish investment firm Development Capital. The minority investment by Development Capital will be used to accelerate the company’s organic and acquisitive expansion plans in the business telephony sector, with the intention to increase annual revenues from a forecast of €6m in 2023 to €11m in FY2024. The investment in IP Telecom brings Development Capital’s total investments in Irish SMEs to €100m since 2013.
Headquartered in Park West Business Park, IP Telecom was established in 2010 and is led by Shena Brien, CEO, and Brian Chamberlain, CTO. IP Telecom offers a full suite of innovative, leading-edge business telephony services and solutions to thousands of business customers across the tech, IoT, education, transportation and logistics, retail and agriculture sectors. With its team of 40 highly skilled employees, IP Telecom is experiencing significant year-on-year recurring revenue growth averaging 25% p.a. The company’s customers are located throughout Ireland and include Sureskills, Portwest, Decathlon, Repak, Right Price Tiles and the Irish Cancer Society.
IP Telecom’s suite of cloud-based, vendor-neutral, dedicated B2B network offers customers fully integrated solutions to power today’s modern way of working and has supported Irish SMEs transition to a remote and hybrid working environment which has been accelerated by the pandemic. In addition, the PTSN (traditional circuit-switched telephone networks) switch-off scheduled in the UK and Europe for 2025, with Ireland set to follow, is expected to drive adoption of VoIP solutions, in addition to along with the increasing benefits for businesses using a cost-effective, dynamic and scalable unified phone solution over traditional fixed line phone systems.
As part of the investment, Anthony O’Driscoll, Investment Director at Development Capital, will join the board of IP Telecom.
It is the 13th investment by Development Capital, bringing the total value of its investments in Irish SMEs to date to €100 million. The investment in IP Telecom is the fourth by Development Capital Fund II, the second €75 million fund managed by Development Capital. The other three investments by Development Capital Fund II so far are Spotlight Oral Care (Galway), Nomadic Foods (Donegal), and Wogan Build Centre (Louth).
Announcing the new investment made by Development Capital Fund II, Anthony O’Driscoll, Investment Director of Development Capital, said: “We are delighted to announce details of this significant investment in another highly ambitious company and management team. We are excited to partner with and back IP Telecom’s goal of becoming a significant player in the hosted business telephony sector, which has experienced significant recurring revenue growth and demand in recent years.”
Addressing future investment plans, Development Capital Co-Founder and Partner, Andrew Bourg said: “We are delighted to complete our investment in Brian, Shena and the IP Telecom team. IP Telecom has demonstrated a clear and focused strategy in delivering its enterprise and business solutions. We look forward to assisting them achieve their ambition of both organic and acquisitive growth. It is our 4th investment from Fund II to date, and we look forward to partnering with further established Irish SMEs with significant growth opportunities, seeking investment between €2-€12 million”.
Shena Brien, CEO of IP Telecom said: “Since the very beginning of IP Telecom in 2010, we have experienced consistent growth. Together with Development Capital, who share our vision for success, we are looking forward to reaching new heights. At the start of 2023, we set out our goals for the year: the continuation of providing impactful and improved telecom services nationally. With this investment, our innovative technology solutions, dynamic customers, and Anthony O’Driscoll’s counsel on our board, we are set to fulfil this goal and much more as part of the thriving, innovative tech ecosystem in Ireland.”
Development Capital’s investment model is based on backing Irish SME management teams by providing them with both the funding and experience to unlock and accelerate their growth potential.
For Information:
For Development Capital
Conor Dempsey
Dempsey Corporate
conor.dempsey@dempseycorporate.com / Tel: +353-(0)86-247 9892
For IP Telecom
Andie Cooper
Beachhut PR
andie@beachhutpr.com / Tel: +353-(0)86-445 3717
Transaction Advisors
For Development Capital:
Marc Rogers and Kirstie O’Flanagan of Deloitte provided financial diligence; John Murphy and Alanna O’Doherty of PwC provided tax advice; EY-Parthenon led by Helena O’Dwyer and Jim McGovern provided commercial and IT diligence, while Enda Cullivan of Eversheds Sutherland provided legal advice.
For IP Telecom:
David Lucas and Patrick Keane of PKF O'Connor, Leddy & Holmes provided corporate finance advice; Kevin Quinn of PKF O'Connor, Leddy & Holmes provided tax advice and Eoghan Doyle of Philip Lee Solicitors provided legal advice.