SOUTER Investments, the private equity focussed family investment office, is delighted to announce that it has reached agreement to sell Stone Technologies Group (“Stone”, the “Company”), a trusted provider of Circular IT solutions, to Toronto Stock Exchange listed Converge Technology Solutions Corp. (“Converge”), a software-enabled IT & Cloud Solutions provider.
Souter acquired a majority stake in Stone in 2019, investing alongside the Company’s management team and a syndicate of investors managed by private equity house RJD Partners.
Since acquisition, Stone has grown strongly and expanded its range of products, services, and solutions. This includes the roll out of the market leading Stone 360 IT recycling app, which makes management of end-of-life technology simple, ensures responsible e-waste disposal, and allows customers to make progress towards their sustainability goals.
The transaction remains subject to regulatory approval.
Simon Harbridge, Stone CEO commented: “In 2019 we were looking for the right partner to support the next stage of Stone’s development. It has been a pleasure to work with Sir Brian, John, and the Souter team as well as David MacLellan and RJD Partners. The emergence of Covid on the heels of Souter’s investment confirmed our decision to partner with them, with pragmatic advice and considered support the norm, allowing us to focus on our successful growth and transformation strategy. We look forward to continuing our exciting journey as part of the Converge family of businesses.”
Serving the UK’s public and private sectors for over 30 years, Stone assists thousands of organisations to adapt and thrive in a continually changing technology landscape, deploying market leading technologies, delivering personalised services, and providing reliable IT support.
The Company’s vision is to make a true and lasting impact on the way technology is sold, providing a full circular procurement cycle for clients for the good of the environment and future generations. With a focus on sustainability, Stone has made it easy for organisations to recycle their redundant technology through the innovative Stone 360 app.
John Berthinussen, Managing Director at Souter Investments said: “We have really enjoyed working alongside Simon and his team, who have shown real market leadership and a true commitment to sustainability and tackling the problem of e-waste. Stone has grown very strongly, marrying a focus on providing truly innovative and market leading products, services, and solutions with outstanding customer service, all things that resonate with its clients. We look forward to seeing that continue in partnership with Converge and wish Simon and his team every success in the future.”
The deal follows Souter’s recent sale of Duke Street backed specialist care provider Voyage Care to infrastructure investment manager Wren House, as well as the IPO of Ashtead Technologies, a co-investment with Buckthorn Partners, which provides subsea equipment rental solutions, advanced technologies, and support services to the global offshore energy sector. In addition, Souter has added Leader, the Bulgarian producer of high-quality e-bikes, and international higher education student recruitment specialist SI-UK to its portfolio.
Lincoln International are acting as financial advisers for Stone’s shareholders. Dickson Minto are legal advisers for Souter Investments and RJD Partners, with Freeths representing management.