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The managing director of a Hampshire-based IT services specialist which supports the Ministry of Defence and the NHS has bought the shares of his co-founder in a deal worth more than £22 million. Electranet (UK) has been acquired by Andy Richards, who established the business with Andy Crouch 12 years ago.

The buy-out team bought Crouch’s shareholding with the backing of Zeus Private Equity. Zeus invested £6 million in the deal as part of a package worth more than £22 million, which included senior debt and working capital provided by HSBC.

Richards says Electranet has an exciting future: ‘We are entering a period that presents several exciting growth opportunities for the business and attracting an investment from Zeus will enable us to maximise these opportunities.’

Post-completion, Zeus has introduced Bob Holt to Electranet’s board as chairman. Holt, the CEO of AIM-listed support services group Mears, will use his experience to help Richards develop the company.

Also joining the board is Mears’ finance director David Robertson, who becomes a non-executive director, and Zeus partners Ed Fazakerley and Tony Dickin.

Richards’ team was advised by Mark Aitchison and David Chapman of chartered accountant Princecroft Willis while Shoosmiths’ Sean Wright and Lynne Knight provided legal services.

Zeus, supported by law firm Halliwells, appointed BDO Stoy Hayward to carry out financial due diligence on the target business. Deloitte was responsible for the commercial due diligence exercise, with Marsh advising on all the insurance issues of the deal.

This is Zeus’ third investment following its acquisition of the Belfry House Hotel and a majority stake in online floral and gift company Flowers Direct.

Electranet, which is based in New Milton, provides outsourced installation and maintenance services. It specialises in IT hardware, networking and cabling in the UK, Northern Europe and North America.

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