Synertec, a technology-focussed document management and communications business, has been acquired by Restore Plc, the UK’s leading provider of secure and sustainable business services for data, information, communications and assets.
Isca Ventures acted as the lead corporate finance adviser to the shareholders of Synertec. Legal advice was provided by Michelmores (Synertec) and Fieldfisher (Restore Plc).
Synertec was founded in 1999 and is a UK market leader in document solutions and processes, sending communications both electronically and physically on behalf of major public sector and commercial organisations, including around 75% of the NHS Trusts in the UK. It has a long-established customer base with predictable and recurring revenues, and typically wins contracts through the outsourcing of operations previously performed in-house. In the last year, it processed over 125m communications for its customers.
Synertec’s proprietary software platform captures data, transforms it into the required format, and delivers it to the end recipient either electronically or through the more traditional medium of print and mail. The company operates from four sites in the UK: leasehold print facilities in Bristol, Milton Keynes and Warrington, and a freehold head office near Taunton.
Synertec’s business is a highly complementary addition to Restore’s Information Management division and supports Restore’s growth strategy in broadening its offering to existing customers and facilitating the cross-selling of Restore services to Synertec customers. The large number of public sector and commercial bodies who still manage their communications in-house also provides the opportunity for significant growth. The Synertec management team were majority shareholders prior to the acquisition and will remain with the business.
Synertec has been acquired for an initial cash consideration plus deferred cash consideration based on Synertec’s future profits.
Synertec expects revenue for the twelve months ended 31 March 2025 of c£70m, of which around 60% relates to postage costs for physical communications which are passed on to its customers. Adjusted operating profit for the same period is expected to be c£6m. Excluding the pass-through of postage costs, operating margins are expected to be c20%.
The acquisition is expected to be immediately earnings enhancing for Restore.
“Synertec is a highly complementary addition to Restore and will broaden our service offering to existing customers and provide an attractive opportunity to accelerate growth, both for Synertec and the Group. We look forward to bringing the businesses together and creating value for all our stakeholders,” said Charles Skinner, CEO, Restore Plc.
“Over the past 25 years we have achieved significant growth at Synertec and built a strong platform with which to take us to the next level. Finding a company with the right cultural fit was vitally important to us and I’m pleased to say that we believe we have found that in Restore. I’m genuinely excited to see what Synertec and Restore Information Management can achieve together over the next few years,” said Tom Baldock, Synertec Managing Director.
“Isca Ventures has been exceptional throughout our process. During the exit planning stage they explained, evaluated and, for selected exit options, market tested our preferred exit options. This ensured we could select the best and most deliverable option for our shareholders. Isca Ventures acted as the lead adviser in the negotiation, delivery and project management of our company sale process. They added value at every stage of their involvement, and we would highly recommend their team,” added Tom Baldock.
