Fourfold gain for investors
Maven and SIB sell stake in Incremental to Dunedin
Neil Logan: looking forward to next phase of journey
Private equity house Maven Capital Partners and the Scottish Investment Bank have sold their stake in Glasgow-based digital transformation company Incremental Group to Dunedin.
The total value of the deal has not been disclosed but it has seen the value of their investment rise by 4.1 times.
As part of the transaction Dunedin Enterprise Investment Trust has invested £3 million via its fund Dunedin Buyout Fund III and will now have an 8.3% stake in Incremental.
Incremental is a digital technology services business, employing 125 people across five sites in Glasgow, London, Manchester, Inverurie and Northwich. It helps clients achieve digital transformation across core business applications, moving to the cloud and leveraging data and AI.
It was formed following the acquisition of First eBusiness Solutions in December 2016 and later added GAP Consulting in June this year.
Since Maven and SIB invested in the business in 2016, Incremental has grown significantly, with its order book increasing more than four-fold on the previous year. For the current financial year, revenue has risen 60% to £6.6 million and EBITDA by 100% to £1m.
Incremental has become one of the largest Microsoft dynamics partners in the UK, working with a range of blue chip clients including Aggreko, Total and Scottish Leather Group. Its sale to Dunedin will enable the business to take the next step in its evolution as it targets £60m revenue, £10m EBITDA and a workforce of 500 by 2022.
Neil Logan, CEO, Incremental Group, said: “Together with Maven and SIB we have achieved a great deal and I thank them and Clydesdale Bank for their initial belief in us and their support. I look forward to the next phase of our journey and working with Dunedin to realise our full potential.”
Julie Glenny, investment director at Maven, said: “Maven’s exit from Incremental is an excellent result for our Investor Partners network.
“Generating a 4.1x return in just two years stands as a testament to the Incremental management teams’ ability and ambition to build a successful digital services business, but also Maven’s capability to support entrepreneurial smaller businesses and help them achieve their growth aspirations.
“We are proud of how we have enabled Incremental to add significant scale to the business through organic growth and key acquisitions.”
Kerry Sharp, head of the Scottish Investment Bank, commented: “This is an excellent example of our investment funding helping an ambitious management team to create a business of scale.
“More broadly Scottish Enterprise has been working with the Incremental team since inception supporting a range of initiatives including growing their talented workforce and we look forward to continuing this support going forward.”