LDC has invested in Kick ICT, as the Scottish MSP aims to accelerate its UK-wide expansion plans.
The transaction represents a successful exit for growth capital investor BGF which initially backed Kick ICT with £8.5m of investment in 2021.
BGF oversaw the acquisitions of Consolium in 2022 and C2 Software in 2023. The exit, led by BGF investor Richard Pugh, delivered a 2x money multiple and a 38% internal rate of return on the investment.
Tom O’Hara, CEO of Kick ICT, said: “BGF’s investment in 2021 allowed us to continue to deliver our ambitious growth strategy and strengthen the senior team in preparation for the scale of opportunity we see in front of us.”
LDC’s will support Kick ICT with further acquisitions, targeting complementary businesses in Scotland and the north of England.
The existing management team, led by CEO Tom O’Hara and Group Sales Director Alan Turnbull, will remain in place, with Geoff Neville, who BGF introduced to Kick ICT as Independent Chair, continuing with the business.
Lee Donaldson, Investment Director at LDC in Scotland, added: “Tom and Alan are committed and ambitious founders, and we will support them as they continue their run of acquisitions to drive growth and expand the business outside Scotland.”
LDC has having made more than 20 investments into businesses in the ICT sector with a total enterprise value of £1.4bn since 2012.