Investment type
- Secondary buyout
Headquartered in London, Babble provides a wide range of unified communications and cyber security solutions for over 2,000 small and mid-sized businesses.
Formerly known as IP Solutions, the company’s services include hosted telephony (VOIP), unified communications, cloud contact centres, mobile and enterprise connectivity.
In 2017, the management team secured investment from LDC to accelerate their growth strategy through acquisitions and to support organic growth through new product innovations.
When we chose to partner with LDC as our private equity backer in 2017, we were looking for a team with experience of working in our sector, but also one committed to supporting our acquisition strategy. The team at LDC ticked both boxes and delivered on their promises. LDC didn’t just buy into our business, they bought into our vision and backed us as a team to deliver it.”
Scale through acquisition
During its initial three-year partnership with LDC, Babble made six acquisitions with £9m of follow-on funding, including four during the Covid-19 pandemic.
A successful buy and build strategy helped the business to expand its product portfolio, extend its geographic footprint across the country and consolidate its position in the UK’s unified communication market, growing revenues by 230%.
Babble’s success has also been underpinned by organic growth. The launch of its contact centre proposition and performance of its communications offering helped the firm grow fixed revenue. Supported by LDC’s Value Creation Partners, the business also won new contracts across LDC’s portfolio of mid-sized businesses.
Continued support
LDC completed a partial exit in November 2020 in a transaction that values the business at £90million – 20 times higher than when we first invested. LDC retains a minority stake in the business to support continued growth.
Babble has continued its acquisition strategy with the acquisitions of Shape Networks, Ultracomms and 81G Blue – all completed within three months of the exit and then more including Stockport and Ellesmere Port-based IT and telecoms solution provider, Active, business phone systems specialist Berry Telecom and Sussex-based Cavendish Communications.
Read our Q&A With Matt Parker, former CEO of Babble
Awards
Regional Finalist – Matthew Parker
EY Entrepreneur of the Year 2022
Large Deal of the Year
Thames Valley Deals Awards
Business Transformation Management Team of the Year
BVCA London and South East Awards 2020