Administrators summoned by 2e2

IT Services Company 2e2's UK Operations Collapse Due to Unsuccessful Financial Borrowing for Loan Repayment

, and Administrator

2025 September 15 . 1:23 AM

1 min read

Administrators summoned by 2e2

In a significant development, one of the UK's largest IT services companies, 2e2, has entered administration. FTI Consulting has been appointed as the administrator for 2e2's UK divisions, with Simon Granger from FTI Consulting assuring the continued provision of business-critical services to 2e2's customer base.

2e2, based in Newbury, employs around 2,000 people. The company's downfall appears to be rooted in its financial struggles, which began with a £153 million debt accumulated to fund acquisitions, including the £70 million purchase of Morse in 2010.

The private equity firms that originally privatized 2e2 were 3i Group and Matrix Private Equity. Later, ownership was transferred to Duke Street Capital and Hutton Collins. However, efforts to sell the company in 2011, including a potential deal with Cable&Wireless, failed to materialize. The failure to secure additional funding for the business ultimately led to the administration.

TechMarketView analyst Anthony Miller noted that 2e2 "forgot what its knitting was (UK infrastructure services)" and ventured into new service lines and geographies. This diversification may have contributed to the company's financial difficulties.

In September last year, 2e2 was issued a county court judgment over the late payment of £14,000 in debt. The interest on 2e2's debt repayments for 2011 was over £20.8 million, wiping out a potential £20 million profit.

Despite repeated attempts, 2e2 could not be reached for comment regarding the current situation. The overseas subsidiaries' disposal process is ongoing.

This news marks a significant blow to the UK's IT services sector, and the outcome of the administration process will be closely watched by industry observers.