Software firm in £12.3m acquisition ahead of plans for further growth
DCSL Software has acquired GuideSmiths in a £12.3m deal that cements the group’s position as the UK’s leading software development and digital transformation company.
The software development and digital transformation specialist, which will rebrand as DCSL GuideSmiths, has doubled to a team of more than 250 across six locations in the UK and Europe and has a combined turnover of more than £20m.
DCSL has an office in Manchester’s Piccadilly Place, which will now be occupied by the rebranded entity.
The business, which delivered 40% revenue growth in 2020 under the continued leadership of chief executive Nick Thompson, has further ambitious plans for both strong organic and acquisitive growth.
GuideSmiths managing director, Mike Newall, will support business growth objectives in his new role as commercial director of the group.
The business’s offering has expanded through an enhanced skillset with capabilities now ranging from large scale digital transformation, team augmentation, delivery of discrete Agile projects and creating world class bespoke software using complementary tech including, but not limited to, Microsoft .NET, Power BI, React and Node JS.
The company’s capabilities also include DevOps proficiency and deployment on Azure and AWS.
The merged group boasts international brands within its portfolio including MailOnline, Bourne Leisure, Centrica, Infinitas Learning, Fine+Rare, Marsh & McLennan, Smith & Nephew, Pearson Education, Apax and the Medicines & Healthcare Products Regulatory Agency (MHRA).
Based in Farnborough, DCSL GuideSmiths’ offices span London and Manchester in the UK, with overseas offices in Bucharest, Budapest and Madrid.
The acquisition is DCSL Software’s first as a private equity-backed business following a multimillion-pound investment from private equity fund Queen’s Park Equity (QPE).
Nick Thompson said: “This acquisition and rebranding represents a step change for DCSL and I am hugely proud of the growth we have achieved in recent years.
“The skillsets and specialisms housed in DCSL and GuideSmiths perfectly complement each other and bringing the two businesses together expands our capabilities and offering to our customers.
“We are pleased to close this deal and look ahead to a prosperous future that will see further M&A and geographical growth.
“We are truly excited about the next chapter in our history and look forward to delivering more success to our new and existing clients.”
Kajen Mohanadas, of QPE, said: “The acquisition of GuideSmiths by DCSL is a perfect pairing and integration of software skills, professionalism and team-based culture, creating a company with an impressive international footprint and much broadened capabilities as exhibited by its strong customer base.
“We are pleased to be supporting the group’s ongoing investment and organic growth.”
GuideSmiths co-founders, Glenn O’Grady and Felipe Polo Ruiz, will continue in non-executive director roles to support the strengthened business.
O’Grady said: “We are pleased to have found such a perfect synergy with DCSL and believe that the proposition, via extended service capabilities, gives DCSL GuideSmiths a strong platform in the market with great scope for the team and clients.”