Everflow tech group is expanding after completing management buyout

A highly anticipated tech company based in County Durham has unveiled its expansion plans following the successful completion of a partial management buyout.

Everflow, headquartered in Peterlee, encompasses two entities: Everflow Water, a business water supplier, and Everflow Tech, a software developer. The group intends to broaden its service offerings to encompass other utilities beyond the water sector. Notably, in 2021, the company earned the distinction of being the third fastest-growing business in Europe. It has now executed a management buyout led by its current management team, signifying a partial exit for primary investor Perwyn.

Everflow Water made its debut in 2015, driven by CEO and founder Josh Gill’s vision of creating an ethical water retailer that leverages technology for efficient operations. Four years later, Everflow Tech emerged as an independent entity when the team recognized the potential of their software to benefit the entire water market.

The company has expressed that this transaction will yield a remarkable return on investment for Perwyn, which initially became an investor in the company in 2018. This deal will provide the company with the opportunity to revamp its capital structure. Perwyn has confirmed its intention to retain a substantial minority stake in the company, along with its position on the Everflow board.

Ravi Sharma, partner at Perwyn and board member of Everflow, said: “We have been tremendously impressed with Everflow’s performance. Their journey began in 2017 when the UK water market deregulated, and it has been truly satisfying to witness its remarkable growth, now serving over 60,000 customers.

“The Government’s deregulation initiative fostered increased competition, allowing Everflow to identify and seize opportunities using its technology focussed approached, ultimately benefitting water users. They have emerged as market leaders, capturing 26% of customer switches since deregulation. Josh and his team have done a phenomenal job.”

Everflow CEO Mr Gill said: “We are grateful to Perwyn for their enduring support of Everflow and are very pleased that they will remain shareholders. Ravi and his team have played an invaluable role in our growth journey to date and their support and advice will remain key as we look to substantially scale the business into different utility verticals.

“We have learnt how to maximise advantages in UK utilities markets following the end of monopoly models for those basic services and our future plans include targeting the telecoms and wider utilities.”

The Perwyn deal team was comprised of Ravi Sharma, Mike Rothwell, and Mark Deed, with advisory support from Phil Williams and Abu Ali of WilliamsAli, Matt Walsh from Muckle LLP, and David Mkhitarian from Hill Dickinson.

In a recent development, Everflow revealed the expansion of its waste network by onboarding 69 new suppliers, which includes prominent industry leaders like Biffa, B&M Waste Services, and Enva. This addition of new suppliers not only extends the geographic reach but also solidifies Everflow’s waste management services, now covering 95% of the UK.