Greater Manchester telecommunications and technology service provider Zen Internet has secured £20m financing deal from NatWest Bank to accelerate business growth and challenge the “big four” telecoms providers.
A Which? Recommended Broadband Provider, Rochdale-based Zen will use the financing to accelerate growth as part of a five-year intensive strategy in a bid to challenge the “big four” telecoms providers by providing a reliable service to business and residential customers.
Paul Stobart, CEO, Zen Internet, said: “This is a very exciting time for everyone at Zen, including our customers and partners.
“As an organisation we will continue to focus on sustainable growth, rather than short term profit, ensuring that we do the right thing by our people, customers and partners. A portion of the funding will be used to refinance debt, whilst the balance will be reinvested into our network infrastructure, people and product offerings.
“We believe that through our exceptionally dedicated people, award-winning services and leadership, we are in a great place to do things differently and achieve our ambitious business targets over the next few years.”
Zen is also one of the first providers to sign up to Ofcom’s voluntary auto compensation scheme which it has also extended to channel partners and wholesale customers.
The company also launched an ‘industry-first’ lifetime price guarantee – Price for Life – earlier this year.
It said with the industry known for ‘punishing customer loyalty with higher prices, Zen customers can rest assured that as long as they remain a customer that they will not see a price rise.
The new revolving credit facility from NatWest, which was led by Mike Malone, Kieran O’Malley and Martyn Lylyk will allow significant investment into Zen’s network infrastructure, people and product offerings.
Mike Malone, director, structured finance, NatWest, said: “Zen has a well established track record and an ambitious growth strategy. We are pleased that we have been able to provide the financial support needed in order to deliver on its next phase of growth and support another exciting, high growth locally based business.”
Nick Dodd, Head of Debt Advisory for KPMG in the UK, added: “We’re very pleased for both Zen and NatWest for having agreed a funding solution that will provide the business with the right flexibility to deliver Zen’s ambitious growth plans.
“It has been a pleasure to advise Zen given its exciting growth trajectory and strong commitment to its people, customers and the local community.”
Zen was provided with financing advice by KPMG Debt Advisory (Nick Dodd, Meredith Casey, Neil Brown and Eddy Lanaghan).
Eversheds Sutherlands Manchester office advised management as part of the deal, through a team led by Jason Wurzal with Addleshaw Goddard supporting NatWest.
