INTRINSIC Technology is on the verge of completing a multi-million-pound deal that will see an investor take over the business with the aim of quadrupling turnover to £100m inside 36 months.

The unnamed investor has been in negotiations for several months to buy a majority share in the Newton-le-Willows technology business.

The founder and managing director of Intrinsic, Allan Gauld, will dilute his stockholding but will remain with the firm, initially in a chief executive-level position.

Intrinsic provides communication and IT networks for organisations in a number of sectors, with particular expertise in the finance, local government, utilities, education and health markets.

It was launched 10 years ago and has grown quickly and profitably, with turnover forecast to be between £24m-£26m this year.

Mr Gauld said: “We see businesses this size amble up to £25m,” he said. “The decision was made 12 months ago to go to the next size, to get to the £100m mark to compete with BT and the others.

“There are only two companies that are privately owned in the UK at this level. We did look at acquisitions without venture capital support, but I just felt that the time was right after 10 years to get outside interests to come in.”

Intrinsic employs 78 people at its head office and logistics centre in Merseyside and at offices in London and Scotland.

Mr Gauld added: “Monthly, weekly, daily we are winning new business here, so we have got to bring in more people. We have got 19 new heads to come in next year.

“The climate that we are in we are making money in a downturn and we would like to think we will prosper when the upturn comes.

“We are being used as a vehicle that will just move and grow. There will be four or five acquisitions over the next couple of years.”

While the investor will bring “expertise and value, especially for acquisitions”, Gauld is confident that Intrinsic’s management team can continue to deliver the fast growth.

“We will have to beef up our operations, but I do think that every member of the seven-strong management team will remain as they are, pivotal to the business.”

SEE tomorrow’s LDPBusiness for a full interview with Intrinsic Technology’s Allan Gauld.