A Wrexham-based IT services company has been sold out of administration, safeguarding 14 jobs.
Advatek (UK) Limited’s business operations have been acquired by CAE Technology Services Limited in a pre-packaged sale overseen by administrators Craig Povey and Gareth Prince of Begbies Traynor.
Since 2014, Wrexham-based Advatek (UK) Limited has provided IT and cybersecurity services to a range of organisations, including multinational corporations, owner managed businesses, educational facilities, retailers, and construction sites.
The business was adversely affected by the Covid-19 pandemic when a number of key projects were put on hold or delayed due to the uncertain business environment. Despite securing additional funding, the company struggled amid slow sales and inflationary pressure on overheads. The situation was further compounded by the loss of a key member of the sales team.
Commenting on the sale, Craig Povey, joint administrator and partner at Begbies Traynor in Birmingham, said:
“Advatek is not alone in finding itself in a perfect storm during the pandemic. Despite the difficulties it has faced in recent years, it has a strong and experienced team of people. This sale is a great outcome, which enables customers to receive continuity of service with the backing and resources of the much larger acquiring business.”
On completion of the deal, the new owners confirmed that service provision under existing contracts will continue uninterrupted with all Advatek employees being retained.
Justin Harling, CEO of CAE Technology Services Limited, said:
“In Advatek, we recognise our own purpose to transform people’s experiences, and people’s lives, through technology. Our purpose is what drives us every day, it fuels our daily commitment to making a meaningful difference in our customer relationships, the solutions we provide, and the outcomes we achieve together.”
