With combined revenues in excess of $90 million, the new company - named Radius - brings together two longstanding, experienced players in this marketplace. It provides clients with increased resources, an enhanced knowledge base and a dedicated, proprietary software platform to support overseas office activities. The terms of the transaction were not disclosed.
The overall statistics of the new business are impressive:
• 700+ employees
• 500+ active clients
• 6,000+ client employees in more than 80 countries
As well as providing enhanced finance, banking, tax, HR, legal and compliance services and solutions, Radius will accelerate the rollout of OverseasConnect, a proprietary, cloud-based software platform designed to manage international business operations from the desktop. Created and developed by HSP, this platform helps businesses use technology to manage their multi-office sites.
Talking about the new business, Chris Stone, CEO of Radius and previously CEO of Nair & Co, states: “The combination will see Radius adopt Nair & Co’s robust client-focused service operating model and HSP’s sales, marketing and technology capability, creating a business that is exceptionally powerful and a ‘best of breed’ in this industry. Radius will be the global growth experts that businesses turn to when they launch, manage or outsource their international operations.”
Financing for this transaction was led by HgCapital, the private equity business that purchased Nair & Co in August 2013, Silicon Valley Bank and Lloyds. Matthew Rourke at HgCapital states: “Bringing these two businesses together creates a clear leader in the marketplace. The size, expertise, services and software provided by Radius will ensure significant growth for the company as more businesses take advantage of the global growth services that Radius offers.”
Clients will benefit from:
• Increased service offerings delivered by a single, in-house specialist team
• More in-depth skills and expertise to provide greater client-focused, tailored solutions
• A bespoke software package – OverseasConnect – which allows clients to manage and control their international operations from their desktop
• Greater resources and support functions to drive efficiencies and add value
• Peace of mind that comes from being supported by a bigger and more robust software and services provider
Larry Harding, Founder & CEO of HSP, will remain with Radius and take on the role of Vice Chairman and Executive Director for Corporate Development. In addition, Baird Capital, the largest investor at High Street Partners, will rollover 100% of its equity into Radius and Partner Benedict Rocchio will join the Board of Directors.
Talking about the transaction, Larry states: “This combination is a great fit, commercially and culturally. Both businesses have grown by providing excellent client service and on delivering innovative solutions that meet the challenges experienced by customers.”
Benedict adds: “The opportunity to be part of the strategic vision that Chris Stone and Matt Rourke have relative to this market opportunity was compelling. I am delighted that we have found a like-minded, client-centric business to join forces with.”
Commenting on HSP’s achievements, Chris states: “Larry, the management team and their investors, Baird Capital and Sigma Partners, have built a successful business, with some innovative approaches to supporting clients’ growth globally. In addition, they have introduced an increasing number of dynamic software applications in what has historically been a services-dominated market.”
Radius is expected to see significant growth in the coming years, due to increased demand for international expansion software and services. Chris concludes: “The rapid pace of globalisation is driving the demand for our solutions. Businesses are exploring new territories and need professional experts with the right tools to navigate the operational and overseas challenges that come with entering new markets.”