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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. ®

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