Portfolio News

Node4 completes strategic acquisition of open source technology services business Reconnix

Derby-headquartered Node4 (“the business”), the leading regional data centre, managed IT and communications specialist, has completed the acquisition of Reconnix, a leading open source technology services company, for an undisclosed sum.

The deal, which was transacted with support from leading private equity provider LDC, represents the second acquisition to be completed by Node4 since LDC backed the business in May 2013.

The transaction forms part of Node4’s ongoing acquisitive growth strategy, targeting complementary businesses operating within the data centre and cloud services markets.

Node 4 provides a wide range of data centre and managed IT services, including colocation, connectivity, managed hosting, communications and hosted telephony, and a range of cloud services, to a UK-wide network of more than 700 fast-growing SME customers.

Node4 provides the very latest in technology and security measures, ensuring that even the most mission-critical IT applications are fully protected and hosted securely, and operates a regional network of data centre facilities located in Derby, Northampton and Leeds.

Newark-based Reconnix is an open source technology services company specialising in application development and fully managed cloud and dedicated hosting solutions. It provides managed services for dedicated and cloud infrastructures, professional services for open source projects, open source application support and application development to its UK customers including Morphsuits.co.uk, Visit Cornwall, Internet Watch Foundation, Johnnie Walker and Home Outlet (Wolseley PLC).

The acquisition will strengthen Node4’s existing portfolio of cloud solutions and allow it to further develop its Platform-as-a-Service offering, enabling customers to develop, run and manage web applications to meet their own specific business needs. As part of the deal, Reconnix customers will also gain access to Node4’s existing cloud offerings, as well as its broader portfolio of colocation, network connectivity and telephony and communications packages.

Reconnix’s team of more than 30 technical experts and engineers will remain at the Newark site, which will be incorporated into the Node4 network. Steve Nice, co-founder and CEO of Reconnix will also join Node4 in a senior management role.

Commenting on the acquisition, Andrew Gilbert, Managing Director, Node4 said: “This latest acquisition further strengthens our expertise in three key areas that will be critical to Node4’s future success; application development, operations management and infrastructure management. Reconnix brings a very impressive depth of open source expertise which allow us to enhance our cloud offering and continue to ensure our customers benefit from the very best IT infrastructure tailored to their individual needs.”

John Green, Investment Director at LDC said: “With Node4, one of our key investment objectives was to support the management team in converting viable acquisition opportunities, whilst maintaining continued strong organic growth. Reconnix is a high-quality business and this deal brings additional expertise to Node4, whilst also successfully enhancing its existing foothold within cloud services.

“This transaction represents the second acquisition completed by Node4 with support from LDC, reaffirming our long term commitment to support our investment portfolio with their buy and build growth plans.”

Reconnix was advised by Austin Moore, whilst PwC and Pinsent Masons acted for Node4.

Article Footnotes

Notes to Editors

  1. LDC is part of the Lloyds Banking Group and is authorised and regulated by the Financial Conduct Authority
  2. LDC back ambitious management teams from UK-based companies seeking between £2m and £100m of equity for management buy-outs, institutional buy-outs or development capital transactions.
  3. LDC invests in a broad range of sectors and has particular experience in Construction & Property, Financial Services, Healthcare, Industrials, Retail & Consumer, TMT, Travel & Leisure and Support Services.
  4. LDC has a UK regional network of 9 offices.