The acquisition is expected to more than double Vyta Group’s 2022 revenue as the company prepares a growth strategy for the UK and Europe.
IT recycling company Vyta has acquired Essex-based IT disposal company FGD. The deal comes following a €13m investment from MML Growth Capital Partners Ireland.
MML now has a minority shareholding in Vyta Group. The company said investments have also been made by both existing and new shareholders to help it pursue a growth-oriented acquisition strategy across the UK and Europe.
Vyta said FGD complements its existing services, with a strong focus on customer service, sustainability and security. Following the acquisition, FGD will rebrand under the Vyta Group name.
FGD’s 37 employees will join Vyta, increasing the company’s headcount to more than 120 across its offices in Belfast, Dublin and Essex. In a jobs announcement last year, Vyta said its goal was to reach 150 employees by 2024.
Vyta started out 20 years ago as AMI, or Asset Management Ireland. The company serves the end-of-life cycle of IT equipment, providing secure recycling and disposal services in line with data protection regulations.
The company counts around 25pc of Ireland’s top 200 ICT user organisations among its clients, with past clients including AIB, BT, Kainos and the Northern Ireland Assembly.
Vyta is now one of the largest IT asset disposal companies in Ireland and the UK thanks to this acquisition. FGD’s co-founders will take executive positions within Vyta, with Leigh Medhurst as chief development officer and Daniel Elson as chief technology officer.
Following the acquisition, Vyta expects to reach €19m in revenue by the end of its financial year ending 31 May 2022, up from €8m the previous year. It also aims to reach more than €35m in revenue by May 2026.
“This is an exciting period of growth for Vyta Group, and we are delighted to welcome our new colleagues to the team,” Vyta CEO Philip McMichael said.
“This acquisition makes us a stronger company in a highly competitive market. Our expanded team will be immensely valuable to us as we pursue our ambitious growth plans.”
Vyta said this acquisition is part of a strategy to increase its market share organically while acquiring like-minded IT disposal companies.
The IT recycling company estimates that the addressable market for its services in Ireland and the UK is around €350m, with further market opportunities in Europe.
“We are very excited to join the Vyta team,” Medhurst said. “Over our 11 years in business, we have achieved immense growth year on year, and we look forward to continuing on this growth path as part of the Vyta team.”
The MML funding came from a €145m fund supported by British Business Investments, AIB and a number of international institutional investors.
“We are impressed by the company’s management team and their track record in growing the business to date, which, together with MML’s investment and support, positions Vyta optimally as a consolidator in the market,” MML partner and co-head of investments Neil McGowan said.
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