Portfolio News

LDC-backed Connect Managed Services acquires PC-1

LDC-backed contact centre technology and services group Connect Managed Services (“Connect”) has today completed the acquisition of PC-1 for an undisclosed sum.

Connect provides round-the-clock availability and pain-free transformation of business-critical contact centre and UC (unified communications) environments for global clients from financial services firms such as Barclays to household names including Tesco.

Mid-market private equity investor LDC previously backed the multi-million pound management buyout of Connect in April 2014. The acquisition of PC-1 forms part of Connect’s strategy to broaden its practice areas of expertise with market leading technologies, expand its reach and build scale in its chosen markets.

PC-1 manages some of the largest contact centres in the UK for customers such as NSPCC, Northumbrian Water and Vodafone. Originally founded in 2003, PC1’s strength in platforms powered by Genesys and Cisco technology complements Connect’s existing strengths across Cisco and Avaya contact centre platforms.

Earlier this month (13th June), Connect reported a 39% increase in turnover and a 240% increase in profits (EBITDA) for the 12 months to December 2016 compared to the previous financial year. This existing track record for Connect has been powered by significant new contract wins and has seen the business gain Advanced Technology Partner (ATP) status with Cisco.

The combined operation is expected to see annualised revenues of around £26million in 2017.

Alex Tupman, CEO of Connect Managed Services, comments: “With a pivotal role in the development of omni-channel contact centres in the UK, PC-1 has helped its customers navigate fast-moving consumer trends and all the opportunities of the new digital world. That skill and determination matches our own history, and technical services capability in a highly complementary way – as well as our own culture of ambition.

“We’ve already had a record first quarter of 2017 – and PC-1’s own growth momentum will only add to this. But for the future, most important will be our combined ability to offer a truly consultative, platform-agnostic proposition to our clients. That’s one reason why the value of this alliance became apparent with the help and advice of LDC to originate and structure this strategic acquisition. In the coming months we’re looking forward to developing new channels and opportunities as much as deepening existing relationships.”

Charles Cooper-Driver, CEO of PC-1, adds: “With both teams working in partnership across a number of accounts for years, we’re confident this move is a positive step for all our customers and staff. We all share the values of commitment to people and customers, and a belief in technical innovation to give our customers an edge. Together we can now offer an even more compelling market proposition, which we’re looking forward to demonstrating to all our customers and partners – as we grow the combined business even further.”

Chris Coulton, Portfolio Director, LDC in London, concludes, “The management team at Connect have built a considerable technological advantage in a highly competitive and fast changing industry. To lead in this area and cut complexities for customers, scale and proprietary technology make all the difference. This deal delivers both.

“Working alongside the management team we are supporting a wider strategy of complementary acquisitions, to bring in technological expertise that adds to Connect’s existing services and to boost a considerable pace of organic growth.”

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.