When Nick Akers set out to buy a business in late 2021, his search process had a 24-month timeline attached to it. He figured he wouldn’t need that much time, hearing that those in a similar situation typically are successful around the year and a half mark.
“That’s exactly how mine panned out,” Akers said.
Akers in May wrapped up his acquisition search, closing on a purchase of Chesterfield-based IT managed services provider STL Communications Inc. Financial terms of the deal were not disclosed.
Akers bought the business as part of a search fund process that involves aspiring entrepreneurs raising capital to fund a search for a company to acquire and operate. Typically, as was the case in Aker’s deal, investors in the fund get the option to participate in the acquisition if one results from the initial search fund.
Akers began his search for a business in December 2021 after being accepted into the Entrepreneurship Through Acquisition program of Swiss-based Novastone Capital Advisors, which provides both funding and guidance for people seeking to make an acquisition. Investors in Aker’s fund included Novastone, himself and U.S.-based and international family offices.
Akers, who is now president and CEO of STL Communications, said he began his search with a focus on connecting directly with business owners to inquire about a possible sale. However, about six months into his search, he shifted his focus to engaging with business brokers.
“The reason was then at least you know there is a semi-serious seller involved, if he or she has already engaged with a broker,” Akers said.
Akers learned about STL Communications at a lunch in September 2022 with John Hull, managing director of Clayton-based The Fortune Group, a sell-side M&A advisory firm.
Akers acquired STL Communications from former CEO Steve Leidholdt. Founded in 1989, STL Communications provides IT services in the areas of voice, data and health care. In addition to its Chesterfield headquarters at 100 Chesterfield Business Parkway, it has an office in Kansas City. STL Communications has 40-plus employees, Akers said.
The purchase of STL Communications marks a return to entrepreneurship for Akers. In 2003, he founded enzyme technology startup Akermin Inc., which was spun out from research Akers had done as a graduate student at Saint Louis University. From 2018 to 2020, he was an entrepreneur in residence with St. Louis startup creator and investor BioGenerator, serving as president of Arch Innotek and Gateway Biotechnology. Before that, he was a managing director at St. Louis-based Jost Chemical Co. At Jost, Akers said the firm’s IT department reported directly to him.
“We were implementing a lot of the products and services that a company like this does. I’ve been on it from the buying and implementation side,” Akers said. “I look at this, like many other businesses, as a customer service business. That’s really what we’re selling and providing — excellent customer service and it just so happens the category of products that come along with it are IT and health care categories.”
Akers said he wants to double the company’s revenue over five years. He said that will include a focus on organic growth through expansion of sales and marketing and its product offering, and could possibly include acquisitions. Akers declined to disclose STL Communication’s current annual revenue figure.
Key to closing on the purchase of STL Communications was a team that helped navigate Akers through the deal, he said. That included Saint Louis Bank helping finance a portion of the deal and legal counsel from Lewis Rice, Akers said.
