- Macquarie Capital, Houlihan are working on potential deal
- The UK firm in April agreed to merge with peer Daisy Corporate
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By Vinicy Chan
September 17, 2024 at 23:48 GMT+7
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Macquarie Group Ltd. is weighing a stake sale in Wavenet, an IT services provider in the UK, which could be valued at £1.2 billion ($1.6 billion) or more in a deal, people with knowledge of the matter said.
The Australian owner is working with its own advisory arm — Macquarie Capital —- and Houlihan Lokey on the potential divestment, the people said. The seller is open to disposing of a majority stake though it hasn’t made a final decision on the size, the people said.
A formal sale process is likely to kick off next year, according to the people, who asked not to be identified as the information is private. Deliberations are at an early stage and Macquarie could decide to keep the asset for longer, they said. Representatives for Macquarie, Wavenet and Houlihan Lokey declined to comment.
Dealmaking activity in the technology services sector is picking up on the back of a recovery in corporate IT spending. Focus Group, a UK business technology provider, secured a significant investment from software-focused firm Hg earlier this year.
Founded in 2000, Wavenet provides cyber security, cloud and technology solutions to UK organizations such as NHS Trusts, retailer John Lewis Plc and NatWest Group Plc, according to its website.
In April, Wavenet agreed to combine with local peer Daisy Corporate Services after completing six other acquisitions since 2021. The merged entity could generate a turnover of about £500 million and employ approximately 2,000.