Node4 has completed a management buy-out backed by LDC. The deal will provide capital to help spur the growth of Node4 primarily through continued new data centre development, while also enabling the potential acquisition of neat-fit businesses operating in the data centre and cloud services markets. LDC has backed Node4's existing management team led by Managing Director and co-founder Andrew Gilbert, who will retain a significant shareholding. The transaction also enables the other co-founding shareholder to fully exit the business.
The deal was led by LDC's Regional Managing Director Martin Draper, together with Investment Directors Andy Lyndon and James Robinson. Martin Draper will join the board with immediate effect.
As part of the transaction, the existing management team will be further supported by the appointment of David Goldie as Non-Executive Chairman and Bernie Waldron as a Non-Executive Director.
Previously Chief Executive of TalkTalk Group and Chairman of Opal Telecom, Goldie has a strong track record of working with fast growing entrepreneurial businesses and brings significant expertise in the wider managed hosting and IT services industry. Waldron has held a number of senior positions at IBM across Europe and brings substantial M&A and IT services experience to the business.
Gilbert said: "LDC's investment and support brings additional strategic input and financial backing to our business and reflects the confidence both parties have in Node4's future potential.
"Looking forward, we anticipate that LDC's support will allow us to further strengthen our UK regional market leading position, invest for future growth both organically and through acquisitions, as well as continuing the provision of high quality data centre and cloud services for all our customers, existing and new."
Draper added: "Node4 is a well-established market leading regional data centre services business, operating in a rapidly growing market that is being driven by a growing demand for hosted IT services by SMEs across the UK. We will work closely with the team to execute the next phase of the business' growth and development."
Established in 2004, the business is headquartered in Derby and operates four state-of-the-art data centre facilities - two in Derby, one in Northampton and a further site in Leeds.