LDC backs Kick ICT as BGF exits with healthy return
Private equity investor LDC, part of Lloyds Banking Group, is taking a stake in Bellshill-based IT managed service business Kick ICT, enabling BGF to exit with a substantial profit.
BGF invested £8.5m in Kick ICT in 2021 and has worked with the company since then to support its growth, capabilities and market presence.
This included acquiring businesses, notably Consilium in 2022 and Dundee-based C2 Software in November last year. LDC will continue supporting the strategy.
Geoff Neville, who BGF introduced to Kick ICT as independent chair, will remain with the business, as will the current management team led by CEO Tom O’Hara.
The exit, which was led by BGF investor Richard Pugh, delivered 2x money multiple and a 38% internal rate of return on the investment.
Mr O’Hara said: “BGF’s investment in 2021 allowed us to continue to deliver our ambitious growth strategy, and they were a fantastic partner as we implemented our buy and build approach, and strengthened the senior team in preparation for the scale of opportunity we see in front of us. This will now continue with LDC, and we are excited about the opportunities ahead.”
Richard Pugh, Investor at BGF, said: “We’ve thoroughly enjoyed working with Tom and the team at Kick ICT to deliver fantastic business growth since our original investment in 2021.
“Rapid progress meant all parties were able to realise their objectives ahead of schedule, and now with the incoming investment from LDC, the time was right for us to exit the business. We look forward to seeing Kick ICT go from strength to strength in future.”