A £1.5
million deal between Baxi Partnership Ltd and Poptel, the UK’s leading
co-operative Internet services and solutions provider is set to revolutionise
the way employee-owned organisations secure funding in the future.
The deal
ensures that Poptel employees remain the main shareholders, with 51 per cent of
stock, at the same time as securing funding for growth of the business.
David
Erdal, a director of Baxi Partnership Ltd, which specialises in investing in
majority employee owned companies, was optimistic the deal would pave the way
for similar agreements in the future.
He
commented, “The deal underlines Baxi’s faith in employee-owned businesses. We
are confident of seeing a healthy return on our investment over time and glad
to have been instrumental in keeping Poptel in the control of its employees.”
He added
that research had shown that workforce productivity and commitment is much
higher where staff have a stake in companies.
Shaun
Fensom, Poptel’s founder and chair, added, “This is a milestone for
co-operatives and other employee-owned businesses. For the first time we have a
fund that can act with the speed and flexibility of venture capital and yet
fully supports employee ownership.”
By Ben Willmott. Click hereto respond.
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