Inflexion-backed MBO for Calco Group

Initium has advised the shareholders of recruitment and training specialist Calco Group on its sale to the management team, in a management buyout backed by leading mid-market private equity firm Inflexion.

Founded in 2004, Calco is a leading Dutch provider of outsourced IT recruitment and training services to large blue-chip corporates, focusing on the provision of junior professionals mainly to the finance and insurance sectors, with clients including the main banks and the top insurance companies in the Netherlands.

More recently, Calco has entered into new industry segments such as consumer goods, telecoms, energy, logistics and healthcare and aims to continue to expand into these newer markets.

Calco has developed a MasterClass programme where new joiners are intensively trained over two months, tailored to client specifications, and then placed at client sites under contract for 22 months. At the end of their placement the client has the free option, but not the obligation, to offer an employment contract to the employee. Calco’s clients have effectively outsourced part of the recruitment and training of junior IT staff and retain full flexibility on a “try before you buy” model.

Calco is differentiated from other IT service companies as it encourages and accepts applicants from all educational backgrounds, focusing on the quality and potential of the individual rather than their existing qualifications. Alongside the MasterClass programme, Calco also provides junior and experienced IT employees of MasterClass quality to clients on a temporary basis.

Calco operates its training base in Maarssen in the Netherlands, servicing clients in its core Dutch market as well as more recently in Germany.

Calco’s business model, market dynamics and growth opportunities are similar to those of Inflexion’s investment in FDM, which was successfully floated on the London Stock Exchange in 2014.

René Scholten, Calco founder, commented, “The management team at Calco have done an excellent job in delivering consistently strong year-on-year growth and a first-class service to Calco’s valued clients and MasterClass professionals. With their track record, we believe Inflexion is an excellent partner for Management to continue this successful growth”.