Providence Equity invests in SCG, UK communications and IT provider

• Daryl Pile continues as chief executive officer, while founder Paul Bradford becomes president and board member
• Management team is reinvesting alongside Providence in the transaction
• Ares Credit funds remain as debt financing partners to SCG, having backed the business since 2018

Providence Equity Partners has made a significant investment in SCG, a UK provider of communications, connectivity and IT services for small and medium-sized businesses.

Providence will take a significant majority stake in the business, PE Hub understands.

SCG serves organizations across sectors including healthcare, education, professional services, hospitality and construction, and has grown through both organic expansion and acquisitions. The investment will support SCG’s ongoing acquisition strategy.

Following completion, Daryl Pile will continue as chief executive officer, and founder Paul Bradford will assume the role of president and board member. The management team will also reinvest alongside Providence.

SCG’s proprietary technology platforms include Surgery Connect, used by GP practices, and Evonex, aimed at small businesses and schools.

“We believe SCG has established itself as a trusted IT and communications partner to thousands of UK SMEs through their customer service, deep sector expertise and mission-critical communications infrastructure,” said Michaël Vervisch, managing director at Providence. “As SMEs increasingly look for reliable experts with a comprehensive offering to manage their communications and technology needs, we expect demand for integrated connectivity, cloud communications and managed IT services to continue to grow…”

Ares Credit funds will remain as debt financing partners to SCG, having supported the business since 2018. The transaction is subject to customary regulatory approvals. Providence’s financial adviser was Raymond James, and its legal advisers were White and Case, handling M&A, and A&O Shearman, handling financing. SCG was advised by Houlihan Lokey as financial adviser and Osborne Clarke as legal adviser.

Editor’s note: This news brief was produced with the assistance of artificial intelligence.