BGF successfully exits Scottish IT leader Kick ICT

05/01/2024

BGF, the largest and most experienced growth capital investor in the UK and Ireland, has completed a successful exit from Glasgow-based Kick ICT, Scotland’s largest independent IT managed service provider.

LDC, the private equity investor which is part of Lloyds Banking Group, has announced it has made a significant investment in the company.

BGF originally invested £8.5m in Kick ICT in 2021 and has worked with the company since then to support its growth, capabilities and market presence.

BGF’s investment enabled Kick ICT to continue on its acquisitive growth strategy, with the notable acquisition of Consilium in 2022 and, most recently, Dundee-based C2 Software Limited in November 2023 to expand its specialist Microsoft Dynamics offering to customers across the UK. LDC will continue to support the next stage of this strategy as the business continues to scale.

Geoff Neville, who BGF introduced to Kick ICT as Independent Chair, will continue with the business, as will the current management team led by Tom O’Hara.

The exit, which was led by BGF investor Richard Pugh, delivered 2x money multiple (MM) and a 38% internal rate of return on the investment. This was a strong return for BGF in a relatively short period of time, reflecting the excellent performance of the business and level of future opportunity.

Tom O’Hara, CEO at Kick ICT, 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.”

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