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Restore and Vyta acquiring more ITAD expertise

Recycling market received a double dose of consolidation over the past few days as firms look to bolster their market positions

The IT asset disposal market (ITAD) is a key part of the sustainability jigsaw, and as a result it has seen some of the consolidation that has been a feature of other parts of the channel as firms look to bolster their positions in the market.

This week has been a busy one on the ITAD front, with Restore acquiring Ultratec Holdings Limited (excluding UltraSupport Services), and Irish firm Vyta Group picking up Essex-based IT disposal company FGD.

By gaining Ultratec, Restore is picking up a player that can deliver secure data erasure and physical data destruction services, technology recycling and hard drive parts supply.

The business also has its own IP, its Genesis and Nemesis software that help extend end of life in hard drives making it possible to reuse the technology with improved re-use recovery rates. Ultratec operates out of two locations Stevenage and Harlow, and employs 70 staff.

Charles Bligh, CEO of Restore, said that it was keen to bring Ultratec on board and develop the combined business.

“The team at Ultratec have an excellent reputation in the sector with a specialist focus on hard drive and storage products from repair, erasure and resale. Their innovative Genesis and Nemesis technologies represent opportunities to further expand our capabilities in technology lifecycle services. I am excited about this acquisition and the opportunity it represents for our business,” he said.

Expanding the scale of the business was also the motivation at Vyta Group, which struck out for FGD, following an £11m investment from MML.

MML’s investment resulted in it gaining a minority shareholding in the Group. Existing shareholders and new shareholders – consisting of four members of the Vyta senior management team and the FGD founders – have also made investments to help support the firm’s acquisition strategy.

FGD will rebrand under the Vyta Group name and its 37 staff, which includes co-founders Leigh Medhurst and Daniel Elson, will all come across. The deal means Vyta has added an Essex operation to its Belfast and Dubklin locations and now has a headcount of 120. Medhurst will take on the role of chief development officer, while Elson will be Vyta’s chief technology officer.

Vyta is expecting revenues to reach £16m by the end of its financial year ending 31 May 2022, up from £7m in the previous financial year. The firm has also shared ambitious targets to hit revenues of £30m by May 2026.

Philip McMichael, founder and CEO Vyta Group, said that it was important to buy a firm that had the same culture and values.

“It is important that we acquire like-minded ITAD companies, like FGD, who reflect our principles and exacting standards, ensuring that Vyta Group remains a company that our people are proud to be a part of. This acquisition makes us a stronger company in a highly competitive market. Our expanded team will be immensely valuable to us as we pursue our ambitious growth plans,” he said.

“MML not only share our growth ambition,s but also our sustainability ethos and dedication to growing the circular economy. The funding, along with their knowledge and experience, will be vital to us as we embark on our strategy to consolidate the UK and Europe’s ITAD market,” he added.

Vyta Group’s Medhurst said: “Over our 11 years in business, we have achieved immense growth year on year, and we look forward to continuing on this growth path as part of the Vyta team. Our priority, as always, is our customers, and we are looking forward to working closely with them and to providing the same level of care and services that they are used to.”

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