The buyout was led by chairman Sir Alan Cockshaw and chief executive Kelvin Hingley, who formed a company called Charco to carry out the deal. The deal was backed by Tenon Corporate Finance.
In a statement, Cockshaw said: "I believe this solution immediately overcomes the current uncertainty in the company. It will allow management to focus solely on the development of its core activities from a platform of sustainable financial stability."
The buyout follows an uncertain year for the Birmingham-based group. The firm first revealed it was in talks with a bank to go private in October last year, as it feared a hostile takeover.
Two months later it emerged that nine directors and senior employees agreed to forgo their salaries to shore up the firm after it posted a £2.5m loss.
In the summer, the company revealed it was still owed more than £4m in unpaid fees from the Middle and Far East, which led to speculation that a buyout deal was faltering. This had stopped the firm repaying the Barclays loan.
The uncertainty over the firm's prospects led to a crash in its share price from a high of 60p last year to a low of 4.5p this year.