The deal, which was transacted with support from LDC who invested in Node4 in May 2013, forms part of the business’ acquisitive growth strategy to target complementary businesses operating in the data centre and cloud services markets.
Node4 provides a wide range of data centre and managed IT services, including colocation, connectivity, managed hosting, communications & hosted telephony, and a range of cloud services, to a UK-wide network of around 700 fast-growing SME customers.
The business operates four state-of-the-art data centre facilities – two in Derby, one in Northampton and a further site in Leeds - which all offer the latest in technology and security measures, ensuring that even the most mission-critical IT applications are hosted securely and protected. Node4’s regional data centre infrastructure ensures that it has relatively close proximity to its UK SME customer base, setting it apart from its London-centric competitors by providing a high touch, local service proposition.
LETN Solutions is based in Reading and is a leading cloud infrastructure company, providing managed support, professional services and hosted IT services to its UK customer-base.
The acquisition will extend Node4’s existing portfolio of cloud solutions, allowing it to further its Infrastructure as a Service (IaaS), Disaster Recovery and Virtualisation capabilities. The deal will also enhance and further develop both businesses’ relationships with existing customers, as a result of the extended service offering.
Commenting on the acquisition, Andrew Gilbert, Managing Director of Node4, said: “This is a strategic acquisition for Node4 given LETN Solutions’ capability and expertise around cloud computing. We have placed increasing emphasis on our cloud-based solutions over the past year and this move reaffirms our belief in the opportunity cloud brings to our customers and the industry. There is a common belief in technology and customer focus that will provide great synergy between our two businesses. Furthermore, given our regional business model, LETN Solutions’ location in the South is of great strategic benefit to Node4.”
John Green, Investment Director at LDC said: “This is the first high-quality strategic acquisition completed by Node4 since we invested in the business in 2013 and demonstrates a clear commitment by the management team to deliver growth, both through acquisition and organically.
“The deal brings many strategic and operational benefits to the business, and represents an exciting growth opportunity for Node4 as they look to build their cloud services and presence in the South of the UK. LDC is committed to actively supporting management teams in their ‘buy and build’ strategies and we will continue to work closely with the team to identify further acquisition opportunities in the future.”