£30m merger creates next-generation cloud-centric managed services company
Working in partnership with LDC to bring together these three businesses creates a strong foundation for growth. We plan to invest in great companies and accelerate organic growth through a relentless focus on customer experience. Our goal is not to chase short-term profit gains through aggressive cost cutting as we acquire complementary businesses."Alastair Mills, Executive Chairman
“In a technology market that continues to consolidate rapidly through M&A, we feel now is the right time for a change in focus and culture. LDC’s investment in our business during this unprecedented period is testament to the strength of our proposition.”
Commenting on the impact of the current Coronavirus pandemic and the timing of the company launch, Mike Ing, Managing Director, Kerv adds: “Since we sketched out our CX-focussed investment plan towards the end of 2019, we’ve seen a dramatic shift to cloud-based remote working at an unprecedented scale. With the increasing availability of rapidly innovating cloud based applications, IT managed service providers should no longer need to be asset heavy, or rely on long term infrastructure investments, their job will to be integrate best of breed capabilities to deliver solutions for their customers.
“As a cloud-first, customer-first business we have the combined capabilities to help UK businesses navigate a new way of working as they adapt to an agile, technology-led environment post the pandemic.”
The transaction was led by Head of LDC in London Yann Souillard, Investment Director Aylesh Patel and Investment Manager Lewis Winston. Yann comments: “We’ve been working with Alastair and Mike for some time and we’re all equally excited about the growth potential of Kerv. The combination of customer-focused cloud-based solutions, along with Alastair and Mike’s track record and our approach to long-term partnership all stand the business in good stead to become a market leader.”
LDC’s investment in Kerv adds to the private equity firm’s successful track record of supporting the growth of tech businesses having invested more than £1bn in UK tech, media and telecoms companies. Just last week, LDC backed the management team of Aker Systems, following earlier investments in 3D software reseller Solid Solutions and digital marketing agency Croud.
LDC was advised by RSM (FDD), Armstrong (CDD) and DLA Piper (Legal).