The Channel logo

News

By | Paul Kunert 30th September 2011 10:28

Adapt swallowed by Lyceum Capital

Plans to bankroll M&A action in UK managed services space

VC player Lyceum Capital has coughed £30m for a majority stake in London-based managed services firm Adapt to fuel a 'buy and build' strategy.

The cash will be sealed in a war chest to be opened by current MD Robert Arrowsmith who becomes M&A director to lead a roll out in the managed service channel.

Existing sales director Simon Fisk is also remaining with the firm along with its 100 staff but a yet to be named chief exec from a global managed service provider is set to pitch up in the new year when his current notice period is served.

The burgeoning Infrastructure as a Service space targeting mid-market customers is a "highly fragmented" but only a handful of firms were able to exploit this, said Lyceum Capital in a bit of company propaganda.

"This partnership renders us well-equipped to increase our presence as an essential player in UK mid-market IT value chain and to complete a number of key M&A transactions," said Arrowsmith in a statement.

The buy price for Adapt is roughly seven times the £3.9m EBITDA the provider made in the last financial year. Turnover for that period was £35m.

The deal follows Lyceum’s "platform investment" in food retailer EAT and a £50 injection of capital in management and software accounting firm Access UK. ®

alert Send corrections

Opinion

Microsoft Surface bomb
Killer whale

Chris Mellor

Firm cites 'low demand' plus 'abusers'

Tim Worstall

Or why the reversal of globalisation ain't gonna 'appen

Features

No, silly... he was the fall guy for years of Finnish folly
Fraud image
Frodo and the Ring
Microsoft's strategy is to make Store apps popular. Good luck with that