ABEC, one of Europe’s leading independent Building Automation specialists, has been acquired by funds advised by private equity firm Magnesium Capital supported by credit fund DunPort Capital Management.

Based in Tewkesbury, Gloucestershire, ABEC provides Building and Energy Management System (BEMS), Electrical Power Monitoring System (EPMS) and industrial grade SCADA (Supervisory Control and Data Acquisition) and PLC (Programmable Logic Controller) solutions to some of the largest data centre developers and contractors across the globe, and directly to some of the world's leading hyperscalers.

Shaw & Co led the deal on behalf of ABEC’s shareholders which will see ABEC partnering with Magnesium Capital, one of Europe’s leading energy transition investors, to establish itself as a truly global player. ABEC’s Founder & CEO Matt Morrall will continue to lead the business alongside Chief Operating Officer Matt Litten and both have invested alongside Magnesium Capital as part of the transaction.

Established in 2004, ABEC has grown rapidly over the last decade and will achieve a turnover of over £43m for the 2024/25 financial year.

ABEC, which employs 150 people in 11 countries across the globe, also has a substantial portfolio of BMS (Building Management System) maintenance clients comprising a range of commercial buildings and major data centres. The company’s BMS maintenance offering has also grown significantly in recent years as the systems are increasingly important in helping companies meet their ESG (Environmental, Social and Governance) targets. A BMS can manage somewhere between 60% and 80% of all power consumption in any given building, affording companies the opportunity to save power and reduce energy consumption.

Magnesium Capital, meanwhile, advises on investments in fast-growing technology and tech-led businesses that are enabling the shift to a decentralised, decarbonised and digitised energy system. ABEC's position as a leading BEMS, EPMS and BMS solutions provider fits perfectly with its investment thesis.

Magnesium has been supported on the deal by DunPort Capital Management, a leading European asset management company that provides flexible debt capital to Irish, UK and Western European-based businesses for growth, acquisition or refinancing purposes through its direct lending funds.

Matthew Morrall, Chief Executive Officer & Founder, ABEC, said: “I am very proud of the growth ABEC has achieved over the last decade and particularly more recently over the last three years. This is credit to the wonderful team we continue to build. Our vision has always involved expanding geographically and we are very confident we can achieve this by staying true to our core values. Working with a partner like Magnesium is key to helping us achieve our strategy. We’re very excited about working together over the next few years.”

Daniel Wild, Partner, Magnesium Capital, said: “Magnesium Capital is delighted to partner with Matt and rest of the ABEC management team and to support ABEC on its next growth phase. Data centre energy consumption has increased rapidly in recent years, ensuring this consumption is managed efficiently is critical for all stakeholders, and in delivering the energy transition. ABEC is equipping its customers with the tools and support to manage their assets effectively over their entire lifecycle.”

Jim Shaw, Founder & CEO, Shaw & Co, said: “ABEC has created itself a leading position in BMS and particularly systems into data centres. It was absolutely the right time to seek a partner that could support the team to capture this growth. We set out with an ambitious deal objective for great long-term clients and I am delighted to say that we have achieved this.”

The following advisors also worked on the deal:

- TLT: Legal advice (ABEC).

- Grant Thornton: Financial and tax due diligence (ABEC).

- Claritas Tax: Tax advice (ABEC).

- Walker Morris: Legal advice (Magnesium Capital).

- KPMG: Financial and tax due diligence (Magnesium Capital).

- EY Parthenon: Commercial due diligence (Magnesium Capital).

- Addleshaw Goddard: Legal advice (DunPort Capital Management).