Shropshire Star

Landmark Telford firm in £14 million buyout deal

One of Shropshire's most distinctive companies is to be taken over by its management in a £14 million deal.

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Entanet founder Jason Tsai will retain a connection with the company
Entanet founder Jason Tsai will retain a connection with the company
The £5m pagoda-style headquarters

Entanet, perhaps best known for the giant pagoda on the front of its headquarters on Stafford Park in Telford, will come under new leadership, with mid-market equity investor Mobeus Equity Partners investing £6 million.

It will see the managing director Elsa Chen moving to become chief executive of the group, which employs more than 80 people in the county.

The company was founded by Taiwanese entrepreneur Jason Tsai, who left his position as UK director of marketing at Tatung to start up his own company.

During the hard-hitting recession of the early 1990s he recognised an opportunity in the UK market for affordable computer components and began by distributing computer casings from his garage in Bridgnorth.

"In times of recession people think cheap. They didn't want to buy expensive IBM computers. We were able to supply them with much cheaper models from Taiwan and that is the reason we were so successful so quickly."

Mr Tsai will remain a significant shareholder in the business following the buyout, but will not be directly involved in day-to-day operations. Ms Chen said: "Mobeus is a highly-respected mid-market equity investor and we see this investment as a major vote of confidence in the long-term prospects for Entanet's business.

"It will strengthen our strategy of building a solid loyal partner channel that is capable of driving steady, stable and sustainable growth over the long term. It will also support the continuing investment we are making in our network and in developing and delivering new services that enable our partners to offer more choice and value to the widest range of customers."

The investment will support Entanet's plans to continue the expansion of the business over the next few years.

The wholesale communications services company, now has more than 2,000 partner businesses across the country. The purpose-built £5 million pagoda opened in 1995. It was designed by Mr Tsai's wife Ruth and made from genuine Taiwanese and Chinese materials including specially crafted roof tiles from Shanghai. The unique building is surrounded by gardens with waterfalls' ornate bridges and over 200 Koi carp.

Mobeus partner Ashley Broomberg added: "Entanet has a great reputation and a sound and proven business model. We are delighted to provide our support for the company's growth plans and look forward to working with the management team to build on its firm foundations in the growing connectivity services sector." As part of the deal, Mobeus has introduced non-executive director Richard Atkins as investing chairman to advise Entanet. He was previously non-executive director of Global Crossing UK, Morse, and MessageLabs Group.

Entanet offers wholesale and packaged connectivity services including broadband and traditional telecoms services, among others. It has a national data network that enables it and its partners to provide up to 10Gbps broadband capacity to customers, as well as connectivity into Amsterdam and Frankfurt.

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