Management at an Aberdeen-based telecom company is to expand its operations internationally after securing some £15 million from a syndicate of investors.
Management at an Aberdeen-based telecom company is to expand its operations internationally after securing some £15 million from a syndicate of investors.
NESSCO, which provides its services to the oil and gas industry, received £4 million from Aberdeen Asset Managers Growth Capital and the Scottish Venture Fund.
This was complemented by more than £10 million of debt supplied by Clydesdale Bank. Its funding was arranged by Ian McNeill, a director of its specialist and acquisition finance team.
The syndicate takes an equity stake in the company, with managing director Tom Smith and senior managers Austin Davidson and Bill Fraser remaining shareholders.
Smith said the investment would also support its projects in the North Sea. “This cash injection will enable us to speed up our planned investment in people and technology, so that we can capitalise on the international opportunities available to us in the energy and other sectors.”
Following the completion of the investment, former Aberdeen Asset Managers-backed businessman Bob Forbes joins NESSCO as a non-executive director.
Aberdeen Asset Managers’ team was led by investment director Jock Gardiner, who said he backed the company due to the strength of its management. “Our equity funding will enable them to fast-track the business to its next stage of growth.”
Scottish Venture Fund investment manager Jonathan Lloyd-Hirst added: “NESSCO is a great example of a Scottish business, which has successfully developed its technical expertise through serving the oil and gas industry and now serves several other industry sectors.”
Smith and his team were advised by Johnston Carmichael and Paull & Williamsons, while Aberdeen Asset Managers was supported by Ritson Smith, Biggart Baillie, Anderson Anderson & Brown, Calash and Kudos. Clydesdale was represented by Shepherd & Wedderburn.
NESSCO was established in 1979 and today generates a £20 million turnover. The company has a workforce of 140 at its offices in Aberdeen, Glasgow, Edinburgh, Reading, Azerbaijan and Rio de Janeiro.
