LDC sells stake in Derby IT firm
Private equity firm LDC has exited its investment in IT solutions provider Node4 Holdings in a sale to Bowmark Capital.
Node4, which was established in 2004, is a provider of integrated IT solutions, hybrid infrastructure and cloud-enabled managed services.
The company has grown since LDC backed the management buyout in May 2013, increasing revenues from £13m to £28m and more than tripling staff numbers, with the business now employing 184 people.
During this time Node4 bought LETN Solutions, Reconnix and Premier IT Networks.
Private equity firm Bowmark has acquired a majority shareholding in the business alongside the current management team, led by founder and chief executive Andrew Gilbert. As part of the secondary buyout, Node4 has raised £40m to fund its continued acquisition strategy and strengthen its capabilities in an increasingly digitised market.
Martin Draper, chief executive at LDC, said: “Being able to provide the advanced technology solutions that businesses now need to remain competitive has been key to the growth of Node4. The company’s success demonstrates the impact private equity investment can have as a catalyst to build scale and value, and to support the vision of ambitious management teams.
“Our close partnership with Andrew and the team has helped the business to more than double its revenues and triple its employee numbers. The expanded business and quality of the management team ensures Node4 has a strong platform to achieve further growth, and we wish the business all the best for the future.”
Gilbert said: “Our well-invested infrastructure and technical base provide us with a highly scalable platform, and the financial backing and strategic guidance we have received from LDC over the past three and a half years has been fundamental to our success and growth. With Bowmark’s support, and the additional firepower that this transaction gives us, we are well-placed to capitalise on the significant growth opportunity, both organically and by acquisition.”
Bowmark investment director Stephen Delaney said: “We have been tracking the ICT managed services sector for a number of years and are delighted to have the opportunity to invest in the standout company in the sector. We have been hugely impressed with Andrew Gilbert and his team and what they have achieved to date.”
PwC’s corporate finance team acted as lead advisers to Node4 on the sale.
