Leeds digital transformation scaleups join forces
Leeds-based digital services partner Hippo Digital has acquired fellow Leeds firm The Data Shed, a leading data consultancy, widening its offering to the market and enabling the business to deliver meaningful transformation for customers on a bigger scale.
The firms are two of the highest-profile tech start-ups founded in Leeds in the last decade. The growth of both companies echoes the overall trajectory of the Leeds’ tech sector over the last decade, which has seen a number of notable acquisitions and the creation of two Unicorns, as well as countless startups.
Hippo Digital, established in 2016, has already made a significant impact in transforming the delivery of digital services across the NHS and central government. With over 300 specialists in user research, service design, UX, data, engineering, technical architecture, and security, Hippo has fast become a serious player in the digital transformation space.
The Data Shed has an equally impressive reputation as one of Yorkshire’s most respected data consultancies. It was founded by Anna Sutton and Ed Thewlis in 2013 and currently has 70 epmployees. The organisation offers tech solutions blended with strategy and business change to optimise investment in data solutions.
By combining forces, these Leeds-based firms have created a formidable nearly 400-strong team.
Adam Lewis, chief executive of Hippo Digital, expressed his enthusiasm for the acquisition: “The Data Shed has an impressive history of delivering for clients and has established itself as a real leader in the data field. This acquisition significantly strengthens our data and engineering capabilities to nearly 200 people allowing us to continue to help us solve wider problems for clients, and The Data Shed’s private sector experience extends our reach. We’re delighted to welcome the team to the Hippo family.”
Ed Thewlis, co-founder and chief commercial officer of The Data Shed, echoed Lewis’s sentiments: “Hippo and The Data Shed are united in the purpose of creating solutions that are precisely tailored towards our clients needs and add value every step of the way. By bringing the two businesses together, we combine our talent and experience to disrupt the current market offering, driving meaningful transformation to more clients and ultimately realise better outcomes for citizens and customers everywhere.”
With a combined headcount of nearly 400 and revenues in excess of £40m, Hippo Digital aims to scale its engineering and data practices to sustain rapid growth in the public and private sector, where it has earned an enviable reputation for delivering effective digital services. Hippo Digital’s plans are to continue on its double digit growth trajectory and invest in hiring the best people to grow the business to over 500 employees.
The transaction was supported by Dan Rosinke, James Moore and Declan W Ramsey at Grant Thornton (finance and tax due diligence), Squire Patton Boggs (legal and legal due diligence) led by Mae Salem alongside Paul Mann, Emily Downie and Amelia Sharkey, Armstrong (customer due diligence), Vista (insurance due diligence), and The Data Shed advisors KPMG led by Ben Taylor and DWF led by Amy Woodfine. Funding for the transaction was provided by Andy Croasdell, Jamie Rigby, Scott Bingham and Matt Boreman of NatWest, and legal support was provided to NatWest by Addleshaw Goddard.
Ben Taylor, Head of Technology M&A at KPMG in Leeds, said: “This transaction demonstrates the incredible depth of technology capabilities and ecosystem we have in Leeds and provides a highly complementary opportunity for both The Data Shed and Hippo Digital. The team at The Data Shed bring with them an impressive track record in the private sector that will provide strong further breadth to the data offering at Hippo Digital. We wish the team all the best in their journey as part of this expanded group.”
