Henley-on-Thames: HMT advises Connection Capital on investment in Virtua UK

HMT LLP has undertaken due diligence on the investment in specialist telecom engineering firm Virtua UK (Virtua) by Connection Capital (Connection Capital).

Based in Wiltshire, Virtua provides services from design and installation, to testing and optimisation, for expanding and upgrading mobile networks on behalf of the major UK mobile network operators. Its client base also includes commercial estate owners of major developments such as Terminal 2, Wembley Stadium and the “Walkie Talkie” skyscraper in London. 

Virtua has secured £4.6 million from over 70 Connection Capital clients. The investment will drive accelerated growth by enabling the firm to bid for more and larger contracts and fund targeted acquisitions. Investors will have the opportunity to benefit from tax, as the investment is eligible for the Enterprise Investment Scheme (EIS). 

Led by partner Paul Read, HMT undertook due diligence on this transaction, and director Holly Bedford provided tax advisory services. 

Miles Otway, partner at Connection Capital, commented: “HMT has provided FDD services on a number of our transactions and once again delivered the excellent work and service that we are used to. Paul and his team were responsive, really got into the detail to understand the business and produced an insightful and thorough report that helped both management and Connection Capital focus on the key issues in the transaction. We look forward to working with HMT again on future transactions.” 

Andy Watts, managing director at Virtua UK, commented: "Paul and his team did a very thorough job on this due diligence. Their approach of was an excellent balance of providing our investors with the forensic investigation of our business but at the same time helping us. They helped clarify the challenges we face and the things we could do to improve the business and mitigate our risk. No business is perfect and we've learnt some great ways to improve through this process, which we're grateful for.” 

Read commented: “We are delighted to have advised Connection Capital on this transaction. Virtua operates in an innovative marketplace and with the support from Connection Capital, management is in a strong position to lead the business through a period of rapid and significant growth.”