The deal was funded through a debt line provided by Bank of Scotland Corporate.

The bank has not taken a shareholding in Instalec following its investment and will not have a seat on the board, a bank spokesperson says. The financial terms of the transaction have not been disclosed.

Instalec, which is based in Westhill, Aberdeenshire, provides IT services such as networking, voice communications, cabling and software development.

The buy-out was led by Jim Duncan, who becomes Instalec’s new managing director. He was joined in the deal by business development director Graeme Taylor, technical director Tony Smith and Chris Forbes.

The company was sold by Bruce Masson, who established the business in 1983. Masson has left Instalec following the completion of the deal.

Instalec has more than 50 employees and has recently established an operation in Bellshill, North Lanarkshire.