Digital agency CTI secures £25m minority investment to fund further growth

Manchester digital agency CTI Group has secured a £25m minority investment from mid-market private equity firm LDC.

It said the financial injection will support the next stage of its international growth plans.

CTI helps clients to grow and develop through digital transformation, providing a range of services such as digital marketing, web and app development and digital strategy.

Founded almost 20 years ago, it has completed five acquisitions in the past three years.

This has helped CTI to expand, with revenues rising to £18m in the past 12 months.

Companies operating under the CTI Group umbrella now include CTI Digital, Supercharged Commerce, Stardotstar, Nublue, Ixis, Worship and Mosquito. The group employs 175 staff across its offices in Manchester and Lancaster.

LDC’s £25m minority investment will help the existing management team, led by founder Nick Rhind, to expand and enhance its existing suite of digital services and acquire complementary businesses in the UK and overseas.

This includes plans to expand into new international territories, as well as opening new offices to support a growing client base in the USA, Europe and Asia.

The partnership also provides Nick and the team with extra capital to deliver on their plans to build a people-first international agency.

Richard Ibbett, Jacob Leone and Dale Alderson from LDC’s Manchester-based North West team led the investment. As part of the transaction, Richard and Dale will join the board alongside Simon Wilkinson, former CEO of global software services company Mobica, who joins the group as non-executive chairman.

Chief executive, Nick Rhind, said: “Rich, Dale and Jacob really took the time to get to know our people and our business. They also understood the importance of preserving the things that have made us successful as we grow, from our entrepreneurial culture to our focus on client service.

“We’re excited to create new opportunities for our people and our clients all around the world as we bring our expertise to bear through a combination of organic growth and further acquisitions.”

Richard Ibbett, investment director at LDC in Manchester, said: “Nick and the team have built an impressive digital agency that is growing rapidly. Our support will help the management team to accelerate this momentum. We are already working closely with them to support a pipeline of exciting opportunities that will further expand the business.”

CTI Group was advised by BDO (corporate finance) and DLA Piper (legal).

LDC was advised by EY (corporate finance and tax), BDO (financial due diligence), Addleshaw Goddard (legal) and GRAPH (commercial due diligence).