IT recycling company Vyta has announced a deal to buy Essex-based IT disposal company FGD after a €13m investment from MML Growth Capital Partners Ireland (MML).
FGD will rebrand under the Vyta Group name and its 37 employees, including co-founders Leigh Medhurst and Daniel Elson, will join Vyta.
This will increase its team to over 120 across its expanded network of offices in Belfast, Dublin and Essex.
After today's deal, Vyta is now one of the largest IT asset disposal companies in Ireland and the UK.
Leigh Medhurst is taking on the role of Chief Development Officer and Daniel Elson is now Vyta's Chief Technology Officer.
Vyta said the FGD deal complements its existing services, with a strong focus on customer service, sustainability and security.
It said that FGD cstomers will benefit from its scale, extended range of services and security leadership in a market where growth is driven by increasingly stringent data regulations, such as GDPR, as well as sustainability concerns and obligations across all sectors.
Vyta estimates that the addressable market for its services in Ireland and the UK is more than €350m, with further market opportunities in Europe.
Today's purchase is the first in Vyta's market consolidation strategy as it aims to increase its market share organically while also acquiring like-minded IT disposal companies.
The company said it now expects revenues to reach €19m by the end of its financial year ending May 2022, up from €8m in the previous financial year.
Vyta expects to reach revenues of more than €35m by May 2026.
Philip McMichael, founder and CEO Vyta Group, said this was an exciting period of growth for Vyta Group, and it was delighted to welcome its new colleagues to the team.
"At Vyta, we adhere to the most stringent industry standards while maintaining our commitment to having the best customer service in our industry," Mr McMichael said.
Therefore, it is important that we acquire like-minded ITAD companies, like FGD, who reflect our principles and exacting standards, ensuring that Vyta Group remains a company that our people are proud to be a part of," he added.
The CEO said today's deal makes Vyta a stronger company in a highly competitive market.
"Our expanded team will be immensely valuable to us as we pursue our ambitious growth plans. We greatly admire their work to date and look forward to achieving even greater things together," he said.
"MML not only share our growth ambitions but also our sustainability ethos and dedication to growing the circular economy. The funding, along with their knowledge and experience, will be vital to us as we embark on our strategy to consolidate the UK and Europe's ITAD (IT asset disposition) market," he added.
Neil McGowan, partner and co-head of investments at MML Growth Capital Partners Ireland, said that the European ITAD sector is a fast-growing but fragmented market that presents a significant opportunity for Vyta Group.
"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," Mr McGowan said.
