Mhance picked up by private equity firm

Microsoft Solution partner Mhance is set for growth after being acquired by London-based software and services investment specialist SilverTree Equity.

The tie-up, the details of which were not disclosed, will provide Mhance with increased financial muscle and an opportunity to grow the business. The firm is looking to widen its abilities to deliver and support Microsoft Dynamics, Azure, Power Platform, and data and artificial intelligence (AI) capabilities.

Over the past 15 years Mhance has built up a customer base across the UK and Ireland of more than 500, establishing relationships with household names such as WWF, Médecins Sans Frontières, RSPB, Sir Robert McAlpine and BAM Construct. The company won the 2023 Microsoft Nonprofit Partner of the Year and is one of only two EMEA Dynamics 365 Business Central partners for the charity sector.

Alan Moody, CEO of Mhance, said that the acquisition marked the next chapter in the firm’s story and gave it the opportunity to continue providing innovative services to customers: “SilverTree’s investment marks an exciting next chapter for Mhance. I’m incredibly proud of what our team has built, establishing Mhance as a go-to digital transformation partner in the UK, combining deep sector expertise with best-in-class delivery capabilities and Microsoft know-how.

“This investment enhances our value proposition and accelerates our proven ability to help customers turn AI, data and business applications into measurable business value.”

As part of the deal, SilverTree has appointed industry veteran Julian Stone as executive chairman. His CV stretches over two-and-a-half decades, including time as founder of Pythagoras, a Microsoft Dynamics Partner sold to EY in 2021.

Stone said there was an opportunity for Mhance to support the developments that were being introduced across the Microsoft customer base: “Microsoft’s rapid innovation across AI and Azure is redefining the future of enterprise technology. With AI now embedded across Azure, Dynamics 365, and the Power Platform, organisations of all sizes and sectors are accelerating their digital transformation.

“Mhance is uniquely positioned to help customers to unlock the full potential of this ecosystem – combining proven Microsoft expertise, a strong track record of delivery and our own IP to create tailored, high-impact solutions,” he said.

The move by SilverTree marks another recent example of the private equity industry showing its continued interest in the channel. Last week, Warburg Pincus masterminded the tie-up between Service Epxress, which it already worked with and Park Place Technologies.

Nicholas Theuerkauf, managing partner at SilverTree Equity, said it would be backing Mhance to grow, both organically and via M&A: “We are excited to support the Mhance team and see significant potential to increase Mhance’s growth organically and through M&A.

“That includes expansion into adjacent verticals, enhancing Mhance’s offering in Azure and Dynamics, and continuing to develop Mhance’s data and AI practice, which we believe is market-leading.”

The latest Mhance move also adds to a growing list of M&A moves that have been made in the past few weeks. The past month has also seen ANS buy Makutu, Advania bolster its position in the Nordic market through acquiring Gompute, and Seroda Ventures taking a majority Stake in Google premier partner Evonence.