Shawbrook backs acquisition of Converge UK with ABL solution

Specialist lender Shawbrook has supported private equity firm Inspirit Capital in its acquisition of Converge UK, providing a bespoke asset-based lending (ABL) facility to enable the carve-out of the business from its international parent group.

The deal marks a significant milestone for Converge UK, a long-established provider of sustainable IT solutions and lifecycle services. Founded in 1991, the company delivers hardware, software, managed services and IT asset disposal to customers across the education, public and private sectors, with a strong base of repeat business.

The transaction required a flexible and carefully structured funding approach, reflecting the complexity of separating Converge UK into a standalone entity. Shawbrook responded with a combined ABL package, incorporating confidential invoice discounting alongside a cashflow loan, designed to support both the acquisition and the company’s future growth.

The funding was introduced by EY Capital & Debt Advisory, with Shawbrook’s prior knowledge of the business and experience in sponsor-backed carve-outs helping to secure a smooth and competitive process.

Ed Beazley, Investment Manager at Inspirit Capital, said the lender’s approach was key to completing the deal efficiently.

“Converge UK is a high-quality platform with a distinctive lifecycle proposition and strong foundations for growth. We needed a funding partner who could structure a solution around the practicalities of a carve-out while maintaining momentum through completion. Shawbrook demonstrated a clear understanding of both the business and the transaction dynamics and delivered with focus and reliability.”

For Converge UK, the transaction represents an opportunity to accelerate its strategic ambitions as an independent business.

Managing Director Tim Westbrook described the deal as a pivotal moment: “This was a significant milestone for the business. Shawbrook provided a solution that supported both the transaction and our ongoing requirements, with a practical and responsive approach from start to finish.”

Shawbrook said the structure of the facility was designed to align with both immediate operational needs and long-term objectives.

Oliver Jenkins, Senior Director of ABL at Shawbrook, commented: “This was a complex transaction requiring a considered funding approach.

“By combining ABL with additional cashflow support, we were able to deliver a structure aligned to both immediate needs and longer-term ambitions.”