ECI takes stake in tech support firm behind McLaren supercars

Mid-market private equity firm ECI has taken a majority stake in IT Lab, the technology support business behind McLaren sports cars.

The sale means brothers Sebastian and Lucan Gray, who founded IT Lab in 2000, will be left with a minority share of the £35m-turnover business.

IT Lab sells cloud-based software and provides IT support for small and medium-size companies. It revealed recently that sales had increased 50% since 2013, as businesses increasingly outsource their technology as a way to reduce costs.

Founder Sebastian Gray, who also invests in start-ups including LittleBird, an online voucher website, and SameWave, a business management software company, will keep a board seat. Chief executive Peter Sweetbaum, a former Cabinet Office technology advisor, remains in the top job.

Operating out of London, Cape Town and Manchester – after acquiring local firm JMC IT in 2015 – IT Lab provides infrastructure, cloud, ERP software, mobility and security solutions, as well as managing technology transformation projects to SMEs and midmarket organisations.

“We provide vital IT services to SME and mid-market companies that are the backbone of the UK economy. We are totally focused on helping our clients achieve their business objectives, leveraging technology to operate more effectively, more flexibly and more competitively and supporting them as they grow. IT Lab is in a very exciting growth phase with tremendous potential to expand our capability and reach,” comments Peter Sweetbaum, CEO of IT Lab.

“We’re in a very exciting growth phase with tremendous potential to expand our capability and reach,” said Mr Sweetbaum. “SME and mid-market companies are the backbone of the UK economy.”

ECI, which typically invests £20m to £150m in British businesses, said it planned to merge IT Lab with rivals and improve its technology services.

Tom Wrenn, a partner at the firm, added: “Businesses are increasingly outsourcing IT services to cut costs, and boost productivity and systems resilience. We believe IT Lab is very well positioned for further growth.”

IT Lab made a £1.19m pre-tax profit in 2014, according to the latest Companies House filings. Earlier this year it struck a deal with McLaren to provide technology support at its hub in Woking, Surrey, which has 3,000 workers including Grand Prix racing engineers.