Funds advised and managed by the specialist private equity fund manager YFM Equity Partners have backed a £3m investment into Arcus Global.
YFM’s investment comes from its two advised VCTs, British Smaller Companies VCT plc and British Smaller Companies VCT2 plc.
Arcus is a provider of cloud-based software solutions to local and national public sector organisations.
Founded in 2009 by Denis Kaminskiy (CEO) and Lars Malmqvist (CTO), it has experienced rapid growth as a result of a shift towards cloud-based solutions for software and infrastructure requirements. Arcus has developed a proprietary Software-as-a-Service (SaaS) platform that enables Local Authorities and other Public Sector organisations to transform end to end service delivery in areas such as Digital Transactions, Planning, Building Control, Regulatory Services and Waste Management.
It is also a specialist Public Sector Advanced Consulting Partner for Amazon Web Services and provides unique cloud hosting and managed services to a number of public sector bodies, using their expertise to deliver solutions that are resilient, secure, and cost effective. In the public sector space, the company is using the latest AWS services such as AI and Alexa Skills.
Arcus is based in Cambridge, where it employs over 100 staff, and expects to generate revenue in excess of £13m this year. Their client base includes over 30 UK Local Authorities such as Eastleigh Borough Council, Mid-Sussex District Council and Aylesbury Vale District Council. The infrastructure team serves over 100 Public and Private Sector clients, including Central Government, Universities and large businesses.
YFM’s funds will be used to support the continued growth of the business, building resource in technology development, sales and customer services. Together, this will enable Arcus to further expand its range of software solutions to help the public sector to increase its use of digital technologies and transform services.
Charlie Robinson and Andy Thomas led the investment for YFM.
Robinson said: “Denis and his team have done a fantastic job in building the company and we are delighted to be working with Arcus to support their continued growth over the coming years. They have developed an enviable reputation for their innovative approach and we believe their solutions will fulfil an important role in helping public sector organisations drive efficiencies and to adapt to the changing digital landscape.”
Kaminskiy added: “I am incredibly pleased do have raised this growth investment from YFM. We ran a thorough and competitive process, and they have been a joy to work with so far. Of course, our exciting journey is just beginning, and I am looking forward to YFM’s expertise, advice and support. Our customers desperately need help, and this funding will allow us to improve and accelerate every part of our business.