Compliance firm announces acquisition and PE backing for M&A

Leicestershire-based compliance and safety group Obsequio Group has secured an acquisition and announced that it has received backing from a private equity firm. The investment from Beech Tree Private Equity will support Obsequio’s M&A plans and organic growth strategy.

Obsequio trades under three core brands, Genex, Drax and CDS, providing technology-driven compliance and safety services to customers including local authorities, universities, leisure centres, student accommodation providers and hospitals.

The firm has acquired six companies over the past two years and was looking to scale up its acquisition strategy and buy complementary businesses in the safety and compliance services sector. The company is in active discussions with several potential targets.

The investment from Beech Tree and a follow-on acquisition facility from Beechbrook will enable Obsequio to execute its M&A strategy. The transaction will also see Beechbrook roll its existing facility over.

Obsequio co-founder Simon Cashmore commented: "We have made a number of acquisitions over the last two years and feel like now is the right time to bring on a private equity partner who can help us take the business to the next level.”

"We know that Beech Tree share our vision and ambition of building a standout technology-led compliance services business and their experience in successfully executing buy and build strategies like ours will be invaluable over the next few years."

Beech Tree Investment Director Ben Cartwright said: "From the beginning, we felt a strong cultural alignment with Simon and Simon, which is incredibly important to us.”

"Tech-enabled support services is a key investment area for us, and having already spent considerable time looking at the market prior to meeting the Obsequio team, it became clear very quickly that we had a shared view of the market and the opportunity to build a market leading compliance services business centred around best in class technology.”

"We will immediately be looking to originate bolt-on opportunities in the fire safety space, as well as looking at further acquisitions in areas such as water compliance building management systems and electronic security."

Beechbrook Capital Investment Director Paul Whitehouse added: "We have backed three acquisitions since our first investment in 2021 and look forward to working alongside the management team and Beech Tree as they continue to expand organically and through further targeted bolt-ons."

Alongside the new funding, Obsequio has also announced the acquisition of Nottingham-based APS Security & Fire. The firm is a fire and security specialist, which designs, installs and maintains CCTV, intruder alarm, fire alarm, access control and integrated systems.


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