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BGF exits web hosting firm Miss Group

Fast-growing web hosting firm Miss Group has been sold by private equity firm BGF for an undisclosed sum.

The Manchester-headquartered firm, which offers services including web hosting, domain registration and VPS to SMEs, is now backed by Perwyn.

The firm received an initial £6.4m from BGF in August 2018, before securing a further £13m investment in 2019, with the view to aid international expansion.

Since BGF invested as a minority equity partner, Miss Group’s revenues have grown from £8m to £25m and EBITDA has grown from £2.5m to £11m.

It has also completed seven acquisition across Scandinavia, Spain and the US.

Chief executive Mattias Kaneteg said: “When we met BGF we had ambitious plans for growth and a strategy to add additional complementary acquisitions to our group in geographies where we could see strong potential.

“We’ve exceeded our own expectations and couldn’t be happier with the support and insight we’ve received through partnering with BGF.

“As we look ahead to our next chapter with Perwyn, we will continue to play to our strengths in marketing our market-leading proposition to SME customers with a focus on Scandinavia, Spain and the US.”

The deal with see Pinesh Mehta, of BGF’s Manchester office, step down from Miss Group’s board.

He said: “Miss Group is a fantastic example of a tech business which has taken an industry-leading product and proven business model to international markets in order to drive outstanding growth.

“We believe Manchester and the North West is home to many technology businesses with this potential and we’re keen to back their growth ambitions.”

He continued: “BGF has delivered an exceptional return on its investment in Miss Group in a relatively short period with an IRR of more than 100%.

“This is testament to the strength of the partnership and the entrepreneurial drive of the business.”

Andrew Wynn and Mark Blower, partners at incoming majority investor Perwyn, added: “We have been very impressed by Miss Group’s achievements to date and are delighted to partner up with its visionary founder Mattias Kaneteg on the next stage of the journey. 

“We see that the business has a differentiated offering in attractive market, providing significant scope for further organic growth and continuation of its successful M&A strategy.

“The investment fits perfectly with Perwyn’s core investment thesis of backing high growth founder-led businesses pursuing international expansion and M&A.”

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