Focus Group has secured new investment from private equity firm Hg in a transaction that saw the exit of Bowmark which acquired a significant minority stake in 2020. The terms of the Hg deal were not disclosed but a Sky News report on April 10th flagged up the impending acquisition stating that Focus Group had 'dialled up an £800m sale' netting founders Chris Goodman and Ralph Gilbert (pictured left) over £100m.
Focus Group was founded in 2003 and serves circa 30,000 SME customers. Hg's investment will support Focus' organic growth plan, M&A ambitions and product development initiatives.
Goodman (pictured left) stated: “Hg recognises the commercial opportunity that lies ahead and the capability of the Focus team. It also understands that it is the culture we’ve built at over the past 20 years that is the foundation of our success."
Gilbert added: "Hg has demonstrated its ability to create value using its experience in backing companies that sell business services to SMEs.
"Hg shows a deep understanding of how to maximise and accelerate growth using data and AI – this resonated with us.
"We also share well-aligned views on the future of the ICT industry in terms of product and future M&A opportunities."
Nick Jordan and Joris Van Gool, Partners at Hg, commented: "The long-term trends in small business technology adoption provides Focus Group with a great opportunity to continue its growth trajectory by offering a one-stop-shop for ICT for UK SMEs.”