Key invests £4m in graduate IT training and services provider Sparta Global
Key has continued its recent string of new investments backing an innovative provider of specialist IT Services with a £4m equity investment, to support continued growth and expansion.
With their in-depth knowledge of the IT sector, Key very quickly gained an understanding of our business model. They provide ongoing support at a very senior level, with extremely experienced partners working closely with the business to improve the focus of the management team.
£16m turnover London based Sparta Global operates the Sparta Training Academy, a growing IT trainer and provider of IT services. The firm’s clients include private sector firms and government clients, including Channel 4, Three Mobile, and the Ministry of Justice. The Sparta Academy model upskills new IT graduates with intensive in-house training, which enables Sparta Global to provide blue-chip clients with homegrown, high-calibre IT Consultants, who have mastered the technical and analytical skills required to be productive software engineers. There are currently 120 IT consultants deployed on various client assignments.
The investment into Sparta Global is highly pertinent in the wake of Brexit, as the demand for homegrown talent increases. Some UK industries are likely to suffer from a technology talent deficit, particularly Fintech and insurance, where a high proportion of technology talent currently comes from Europe. Also, the UK public sector will see an uplift in demand for new technology talent to rebuild systems currently held in Brussels. Following the investment deal, Sparta Global will continue to power these industries with a supply of relevant homegrown IT consultants throughout the UK.
Sparta Global approached Key in 2016 on the basis that we have demonstrated a track record of supporting the growth of innovative firms in the sector. We have spent over a year working with the business to ensure our expertise and strategic goals were aligned and together we have developed a strategy for the business that we are confident will generate sustained growth over the coming five years.
The deal sees Key acquire a significant minority stake in the business, which currently employs 160 staff, backing the management team and co-founders, David Rai, (CEO) and Tim Staton (CTO). The investment will fund further expansion, including the opening of new training centres in Leeds and Birmingham that will create a further 100 jobs in 2018, making Sparta Global one of the largest graduate employers within the UK.
Key’s London team completed the investment and Philip Duquenoy, partner at Key, will join the board of Sparta Global following the investment, the fourth from Key’s current fund since the start of 2017.