FluidOne is poised to scale up with a string of strategic buys following its acquisition by mid-market PE investor Livingbridge.
The acquisition of FluidOne from parent company and SCC owner Rigby Group adds to Livingbridge's existing portfolio in the connectivity sector with current investments including M247, Southern Communications and Onyx. FluidOne's latest figures to March 2018 showed a revenue rise of 22% to £26m.
The financials of the acquisition were not disclosed but according to Philip Carse, Analyst at Megabuyte.com, Livingbridge would have likely paid at least a low-to-mid double-digit EBITDA multiple, suggesting £35-40m based on the underlying £3.2m guided for the year to March 2019.
"With its broad mix of fixed and mobile connectivity offerings and its service provider platform, FluidOne is a relatively attractive asset in today’s market driven by the move of IT off premise and into the cloud," stated Carse.
According to FluidOne CEO Russell Horton (pictured) the transaction is an endorsement of his plans to significantly scale up the company as the market for network connectivity across IoT, cloud and mobile continues to expand.
"As companies across all sectors recognise the need for digital transformation, FluidOne sees multiple opportunities to gain market share, not least as the fibre optic broadband network continues to roll out across the UK," stated Horton.
"Livingbridge’s support will help us to exploit these numerous opportunities and develop a strong M&A pipeline in this growing market."
Livingbridge Partner Matthew Caffrey stated: "FluidOne's integrated, automated, scalable technology platform and strong financials make it an attractive acquisition.”
FluidOne provides data connectivity services to UK businesses across the construction, hospitality, hotels, professional services and retail sectors.
The company remains the preferred communications partner for SCC and Group companies.