The business will use the funding to complete the acquisitions of two ICT services businesses, Newburn Consulting and Evolution Voice and Data.

Investec funded the buy-out of Telinet in August 2006 with a combination of debt and minority equity. The current round of financing is in the form of preferred equity, and will be supplemented by investments from the management team, led by new chief executive Paul Cosgrave, and private investors.

Cosgrave comments: ‘The acquisitions have allowed us to strengthen our service offerings as well as underlying our commitment to integrated telecommunications and information technology solutions for our customers.’

Simon Osman, the former MD of Evolution, becomes the chief operating officer of Telinet following the deal. Simon Hochhauser remains as chairman of the enlarged group, which has revenues of approximately £22 million.

Newburn is an ICT consulting and managed services business based in Swindon, which specialises in running IT help desks and providing advisory services. London-based Evolution focuses on internet-based voice technology and data networks.