Lead Forensics

Matthew Parker, CEO of Babble chose to partner with LDC due to our sector experience and our commitment to supporting his acquisition strategy.

PORTFOLIO

Babble: Acquisitive IT business

We were looking for a team with experience of working in our sector.

First three years of partnership supports six acquisitions with £9milion of follow-on funding.

Sector
  • Technology, Media, Telecoms

Babble is a specialist communications technology provider.

Deal type
  • Secondary buyout
Exit type
  • Private equity sale
Exit date

November 2020

Exit value

£90m

Current
  • Reinvested
Re-investment date

November 2020

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.

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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.”
Matthew Parker, CEO
Babble

Scale through acquisition

During its three-year partnership with LDC, Babble made six acquisitions with £9m of follow-on funding.

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 made two acquisitions in the first year of the partnership with LDC; Birmingham-based Arden Group and Direct Response Plus, completing four further acquisitions since then.

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. LDC retains a minority stake in the business to support continued growth.

Shortly after our partial exit, Babble continued its acquisition strategy with the acquisition of Shape Networks, Ultracomms and 81G Blue – all completed within three months.

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The last three years have been transformational for Babble and we are well on our way to becoming a £100million revenue business.”
Matthew Parker, CEO
Babble

Awards

Business Transformation Management Team of the Year

BVCA London and South East Awards 2020