Recent Transactions

Cameron Barney Independent Merchant Bank

Recent Transactions

DataCentred  secures £4 Million of funding from GMIF, Jon Moulton and the North West Fund

Cameron Barney acted as joint financial advisers to Datacentred.

Press Release 28 May 2014

Financing allows company to roll out its next-generation combined colocation and Open Source cloud computing services

DataCentred is delighted to announce that it has secured combined funding of £4m from the Greater Manchester Investment Fund (GMIF), venture capitalist Jon Moulton via his family office, Perscitus Advisers, and The North West Fund for Venture Capital, which is managed by Enterprise Ventures. The finance will be used to fund the company’s further expansion and roll out of its integrated colocation and Open Source cloud computing services.

The GMIF, which supports business growth and job creation in the Greater Manchester region, invested £1m in DataCentred in an initial financing round in 2013, and is now contributing a further £1m.  Jon Moulton, one of the UK’s most astute and successful business investors, and The North West Fund have each provided £0.75m. The North West Fund for Venture Capital is financed jointly by the European Regional Development Fund and the European Investment Bank and supports innovative, early stage businesses in the North West.  DataCentred’s founder Dr Mike Kelly has also participated with a £0.5m investment.

The funding enables DataCentred to complete their first site at MediaCityUK and to continue developing its Open Source cloud computing platform.  The expansion plans are forecast to create around 270 jobs over the next five years in Greater Manchester.

DataCentred was established in 2012 by Dr. Mike Kelly, a pioneer in the data centre sector. Big Data, Video-on-Demand and compute-heavy applications are driving substantial growth in the demand for compute and storage capabilities.   The company will capitalise on these fundamental market drivers and address the colocation and computing requirements of the 80% of UK businesses who are currently managing their computing estates in-house.

DataCentred’s service model, providing dedicated colocation capacity and a powerful Open Source cloud compute and storage platform, has been conceived from the outset as an integrated offering.  The company offers a strategic technology platform for clients to support and evolve their legacy IT systems and develop their cloud capabilities.

In addition DataCentred is completing the first of a number of data centres to support a rebalancing of the UK’s internet infrastructure away from London. Over 90% of internet traffic is currently routed through London.  Such a concentration of traffic via a single location presents latency and resilience issues as well as cost and risk issues for both operators and users of the internet. As the overall volume of internet data continues to increase, with IDC forecasting a rise of 50% in fixed internet traffic and a 13 fold increase in mobile internet traffic by 2017, the issues associated with this imbalance will only become more pronounced.

As the second largest economic area in the UK, with a population of 2.6 million and gross value add of £46 billion, Greater Manchester is a logical base for DataCentred.  The region is home to the second largest cluster of creative and digital businesses in Europe, employing over 320,000 people.  DataCentred’s first facility is located on the MediaCityUK campus in Salford; MediaCityUK is the new home for BBC North, ITV, dock10, Coronation Street, SIS LIVE, the University of Salford and over 150 other creative businesses.

DataCentred provides a continually evolving, world-class, Open Source technology platform. The company’s software development team comprises some of the most respected developers in the industry and offers specific and unrivalled solutions to meet the colocation, computing, connectivity and cloud requirements of large corporations, broadcasters, academic institutions and public sector bodies. Through its partnerships with proven market leaders and innovative players in the development community, as well as with its clients, DataCentred works collaboratively to provide bespoke customer solutions.

Underpinning the quality of DataCentred’s proposition is one of the most experienced management teams in the industry, who between them have designed, built and operated some 30 data centres across the UK and Continental Europe.  Bill Enevoldson, chief investment officer for the Greater Manchester Combined Authority, will be Chairman of the company.

DataCentred was advised by Stuart Moss and Alex Wilson of Rickitt Mitchell and Brian Robertson and Charles Cameron of Cameron Barney; Simon Masters, Nigel Dale and Lizzy Tindall of Eversheds. Stuart Scott-Goldstone of Aaron & Partners advised The North West Fund for Venture Capital.

Dr. Mike Kelly, DataCentred’s Founder and CEO, commented:
“The funding package we announced today from the Greater Manchester Investment Fund, The North West Fund for Venture Capital and Jon Moulton is hugely significant for the company. It enables us to complete our first site and deliver cloud services for our clients. It also allows choice to clients and operators in rebalancing the UK’s Internet infrastructure towards the North.
Our services offer clients the benefits of combining the shared approach of colocation to an infrastructure-as-a-service model. This is an approach that allows companies to change the proportion of self owned computing machinery, flexibly and quickly, by using a cloud within the same facility. With still only 20% of companies using third party data centres at all, there is a huge opportunity for an operator with the right balance to develop a business that helps companies improve their efficiency and profitability.”

Ian Stewart, elected City Mayor of Salford, commented:

“This is investment in jobs and in MediaCityUK to meet future business needs through cutting edge technology. I’m delighted to welcome this to Salford.”

Mike Blackburn, chairman of the Greater Manchester Local Enterprise Partnership, commented:

“GMIF was an early supporter of DataCentred and we are delighted to contribute further finance to help accelerate its expansion. We are also pleased that our backing has attracted further funding to the region. DataCentred has, by building the next generation of computing infrastructure, begun to contribute to growth and job creation in Greater Manchester. As DataCentred expands, its impact on improving the local economy and employment will increase, and its data centre services will help enhance the connectivity, efficiency and competitiveness of businesses in Greater Manchester area and beyond.”

Jon Moulton, Perscitus Advisers, commented:
“We always look to invest in an opportunity in which we see high market growth, management commitment and management capability. We believe that DataCentred is one of these happy combinations, and we look forward to our faith and early stage commitment being rewarded by DataCentred’s future success.”

Richard Young of Enterprise Ventures, which manages The North West Fund for Venture Capital, commented:
“This investment will provide a facility of strategic importance to the North West and support the growth of many other regional businesses which require flexible IT infrastructure. We believe that DataCentred’s innovative approach will enable it to grow rapidly and become a market leader, both in the region and beyond.”

For further information please contact:
Morgan Rossiter
Note to editors – please ensure any online publication includes a link to www.datacentred.co.uk
Richard Morgan Evans /Tania Wild/Imogen Gardam 020 3195 3240

DataCentred: www.datacentred.co.uk

DataCentred is a leading provider of next-generation data centre and cloud computing services that offer a strategic technology platform for clients to naturally evolve their legacy IT systems and develop their computing, networking and cloud capability to help enhance the growth of their business.

DataCentred’s facilities and service model, providing  dedicated colocation capacity, powerful shared computer processing, advanced storage solutions and excellent network connectivity give clients maximum flexibility to vary the range of services they access to match the needs and reflect the growth patterns of their business.

Greater Manchester Combined Authority
http://www.agma.gov.uk/gmca
The Greater Manchester Combined Authority is a unique model of governance for a city region, provided for by the Local Democracy, Economic Development and Construction Act 2009.   Whilst it builds on the AGMA model of voluntary collaboration between local authorities through a Joint Committee, the GMCA is a statutory body with its functions set out in legislation.  These functions, which cover the Greater Manchester area, include all the transport functions previously overseen by GMITA, plus some economic development and regeneration functions.
The Greater Manchester Combined Authority has established an investment framework, the Greater Manchester Investment Fund (GMIF), which is unique in that investments are prioritised towards driving growth in the region with a particular focus on creating or safeguarding jobs. GMIF is a virtual pool of Regional Growth Fund and Growing Places monies. It is closely linked to other funds such as the Evergreen Fund and GM Loans fund which deliver similar objectives

Greater Manchester Investment Fund
http://www.agma.gov.uk/gmca/gm-investment-strategy/index.html

Greater Manchester Investment Fund is the approach the Greater Manchester LEP is using to help deliver the next phase of economic growth in the region in line with the Greater Manchester Strategy. The ten local authorities in Greater Manchester are working to deliver a single investment strategy, which is underpinned by the availability of a range of financial support mechanisms. These include the Regional Growth Fund (RGF) Rounds 2 & 3 and Growing Places Fund. For More information on this please see our website,

Regional Growth Fund
The Regional Growth Fund is a £3.2 billion fund designed to help companies in England to grow and supports projects and programmes committed to deliver sustainable jobs and economic growth. A sixth round will launch in summer 2014. For more information, please go to www.bis.gov.uk/rgf

The North West Fund
The North West Fund is a substantial evergreen investment fund established to provide debt and equity funding (from £50,000 to £2 million) to small and medium sized enterprises based in, or relocating to, the North West of England. The North West Fund addresses an identified gap in the lending, venture capital and private equity markets. It is one of the largest public sector funds of its kind in Europe and the largest in the UK.

The North West Fund is financed by the European Regional Development Fund (ERDF) and the European Investment Bank (EIB) under the European Commission’s Joint European Resources for Micro to Medium Enterprises Initiative – otherwise known as the JEREMIE programme.

The North West Fund is the umbrella name for the six funds that are available to businesses in the form of debt, equity and quasi-equity. These funds are managed by five fund managers under contract with North West Business Finance Limited (NWBF), which has been established to oversee the delivery of The North West Fund.  Initially, £150m has been allocated to the fund managers, as outlined below, with a further £5m to be allocated in due course:

Fund manager Name of fund Fund committed
Enterprise Ventures Ltd Mezzanine £15m
FW Capital Ltd Loans Plus £45m
Enterprise Ventures Ltd Venture Capital £30m
Spark Impact Ltd Biomedical £25m
CT Investment Partners LLP Energy & Environmental £20m
AXM Venture Capital Ltd Digital & Creative £15m
Funding to be allocated in due course £5m
Total £155m

Each fund manager has a mandate to invest their allocation into the specific product or sector they manage, until 31st December 2015. NWBF is a private, not for profit company, established to oversee the delivery of The North West Fund.

Between December 2010 and April 2014 The North West Fund has invested more than £90m in over 270 businesses. Further funding has also been earmarked to support these businesses as they grow and many more new investments are planned over 2014 and 2015.

For further information please visit www.thenorthwestfund.co.uk

European structure, JEREMIE
The JEREMIE initiative offers EU Member States, through their national or regional Managing Authorities, the opportunity to use part of their European Union (EU) Structural Funds to finance small and medium-sized enterprises by means of equity, loans or guarantees, through a revolving umbrella fund. The initiative was developed by the European Commission and the European Investment Fund, which is part of the European Investment Bank Group.

JEREMIE provides for a range of debt and equity financial tools to obtain the most appropriate allocation of funds according to national, regional or local requirements.

ERDF in the Northwest
ERDF is making a real difference to people and businesses in the North West. The current ERDF programme, which is worth €755 million, is enhancing the competitiveness of the region’s economy by supporting growth in enterprise and employment.

ERDF in the North West is managed by the Department for Communities and Local Government – for further information visit https://www.gov.uk/browse/business/funding-debt/european-regional-development-funding.

EIB
The EIB is the European Union’s long-term financing institution and, provides long-term finance for capital projects promoting European economic objectives. The EIB made its first loan in the UK in 1973 and since then has lent around €75bn for investment in the UK economy. In the years from 2004 to 2009, the EIB financed investment in the UK totalling some € 23.5bn – GBP 17.5 billion.

For further information please contact:

Cameron Barney LLP
Brian Robertson +44 7710 094 125
Charles Cameron +44 7785 292 019

This investment will provide a facility of strategic importance to the North West and support the growth of many other regional businesses which require flexible IT infrastructure. We believe that DataCentred’s innovative approach will enable it to grow rapidly and become a market leader, both in the region and beyond.

Richard Young

Partner, The North West Fund for Venture Capital

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