Hebburn firm ITC Service secures £7m investment to fuel growth

A tech firm based on Tyneside is set to grow after securing a £7m investment.

ITC Service, an IT managed service provider located in Hebburn, South Tyneside, was established in 2016 by Christopher Potts and Peter Anderson.

Over the years, it has expanded to provide outsourced IT services to over 400 SMEs across the North East. The company's services, which include managed IT support, cyber security, Microsoft 365 cloud services, voice, communication, consulting and digital transformation, are seeing increasing demand.

Now, thanks to a seven-figure sum from growth capital investor BGF, ITC is poised to continue scaling through both organic growth and acquisitions, including companies in neighbouring regions that complement its own operations. Mr Potts, founder and director, said: "Over the last 18 years, we have built a highly successful, respected business that has developed a strong and valued client base. With the ongoing support of my co-founder Peter, I am excited to lead ITC forward, to continue to grow and support our region, to help more local businesses achieve their goals and complete a carefully executed M&A strategy.

"In order to fulfil this potential, we need an investment partner that is willing to take a long-term approach to support our growth ambitions. With an excellent track record of backing exciting and dynamic businesses in the North East, we are confident BGF is the right choice and we're delighted to have the team onboard."

The deal was spearheaded by John Healey and Christian Pollard, investors from BGF's Newcastle office. Following the investment, Lee Shorten is set to join the company board as non-executive chair, reports Business Live.

BGF investor Mr Healey commented: "ITC is a real success story in the North East, where it has a long-established track record of delivering exceptional client outcomes. With an appetite to accelerate growth, through a leading service offering combined with a client focused approach, ITC is well positioned to expand its footprint in the regional market."

Established in 2011 with backing from some of the UK's major banks, BGF has invested over £4bn in upwards of 600 firms. It touts itself as the UK's most active investor and is known for taking minority, non-controlling stakes with a "a patient outlook on investments".

For this deal, ITC and its shareholders were counselled by Mincoffs and RSM, while Womble Bond Dickinson and Tax Advisory Partnership provided advice to BGF.