Creating Value in Communications Technology Businesses

The ICT sector is crucial to the future of the UK economy. The demand for great connectivity is fuelling rapid expansion within the sector through a range of growth opportunities – and a private equity partnership can support management teams to unlock them.

LDC has a strong track record in supporting growth in the ICT sector through private equity. We back ambitious management teams from our ten regional offices right across the UK, and understand the challenges and opportunities that are unique to ICT businesses. LDC has invested in 24 ICT businesses over the last decade, and the average revenue growth for our exited investments in the sector is 179%.

The sector may be diverse – but that doesn’t mean there aren’t common factors driving businesses forward. Digitalisation, M&A and expanding service lines are all reliable routes to growth, underpinned by market consolidation. The businesses that are able to best react and respond to these trends are looking at a bright future.

ICT is incredibly varied, across a broad range of sub sectors including infrastructure, services, applications and consulting. LDC has deep experience investing across the breadth of these sub sectors and helping management teams to grow their businesses.

In the ICT infrastructure sub sector, across a four-year partnership, we supported Wifinity to double revenue and increase headcount by 46% to become the UK’s leading independent connectivity provider in its markets.

In the ICT services sub sector, we invested in cyber security business Red Helix to support the management team to expand the business’ suite of hardware and software products, and help the team to explore complementary acquisitions.

In the ICT consulting sub sector, we helped digital transformation services provider FSP to more than double revenues and headcount – while being recognised for its people-centric approach in a number of awards programmes, including placing first in three separate Great Place to Work UK® Best Workplaces™ league tables.

The key to the success of any private equity investment is partnership. We’re proud to partner with ambitious management teams from all corners of the UK to help them accelerate the growth of their businesses.

Every LDC investment is different and driven by the needs of the businesses we partner with. Our funding source is unique, and as part of Lloyds Banking Group, we can create a different type of private equity partnership – we’re not tied to fundraising cycles. We can take a long-term view of the sector. For example, we backed the management team of Connect Managed Services through the ups and downs of the market, supporting them to make several acquisitions and triple revenues from £9.7m to £30m over the course of a five-year partnership.

Whether a longer-term investment, or a partnership that benefits from an exit in the short-term, we back management teams to help them to increase the value of their businesses by growing revenue, EBITDA and headcount.