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K2 Partnering Solutions Completes Refinancing Backed by Pemberton and Natwest

LONDON, 13 September 2021- Leading global IT solutions Specialist K2 Partnering Solutions (K2) has completed a refinancing backed by Pemberton and Natwest.

K2 is headquartered in London, with over 18 other offices around the globe. It has established itself over the last 24 years as a global leader in ERP and cloud “niches”, with the ability to now leverage that experience through its proprietary database of professionals and diverse, long-standing relationships.

Inflexion Private Equity Partners LLP (“Inflexion”) invested in the business in March 2017, recognising the opportunity to accelerate growth through investment in the K2 Konnect talent platform and expansion into additional overseas territories. The business operates within the enterprise software outsourced labour market, supported by the trend towards digitalisation, cloud migration and technological transformation. This long-term demand is matched against a scarcity of high-quality technical resources and increasing preference of larger corporates to outsource specialist IT headcount and professional services.

Given the continued delivery of financial performance, the business solicited a number of offers of finance from credit funds and banks within the market. This allowed the group to achieve a financing package commensurate to the expansion in size and quality of the K2 Group, meeting all of the financing objectives it was seeking.

Commenting on the deal, Todd E. Hauser, K2 CFO and COO, said: “The company has restructured its senior secured debt portfolio and its revolving credit facility giving K2 access to additional operating capital to fund our continued and aggressive organic growth. In addition, K2 now has access to an M&A line of credit that will help fund strategic growth from our active M&A pipeline.

“These restructuring actions will fund our current and future capital needs, giving us options and further momentum on executing our growth strategy.

“I am excited about the future of K2 and appreciate the efforts from my global team and new partners in getting this refinancing completed.”

Richard Meehan, Executive Director at Pemberton said: “We are delighted to be supporting K2 through this refinancing. The group is ideally positioned to benefit as their clients accelerate their cloud migration and digitisation journeys over the coming years, whilst helping them overcome a scarcity of IT talent to deliver these large-scale programmes. A combination of K2’s impressive organic growth profile and M&A ambitions has resulted in the business outgrowing the constraints of its existing bank group, and is exactly the sort of transaction we are looking to support through our Senior Loan Fund.”

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The Company was advised on the deal by Deloitte (Debt & Capital Advisory), Taylor Wessing (Legals), Altman Solon (CDD) and PwC (FDD and tax). Pemberton were advised by Proskauer (Legals). Natwest were advised by Ashurst (legals).

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