Case study

babble cloud: Acquisitive IT business

Investment supports doubling of revenue through buy and build strategy.

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Sector
  • Technology, Media, Telecoms

babble cloud is a specialist communications technology provider.

Employees: 35

Deal type
  • Development capital

Headquartered in London, babble cloud provides a wide range of cloud-communications solutions for over 200 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. It supports well known customers including National Geographic, Oak Furniture Land and Secret Escapes.

Scale through acquisition

In 2017, the management team secured investment from LDC to accelerate its growth strategy to fund a series of acquisitions in the UK.

This has enabled the business to build scale and consolidate its position in the market for unified communications, which is worth approximately £500m.

Alongside this acquisition strategy, within a year of our investment the management team expanded its services with several new product innovations to support continued customer growth as more companies shift to cloud-based solutions.

It’s unusual to get a chance to double the size of a business with a single acquisition but with our purchase of Arden Group we have done exactly that. More importantly we’ve significantly strengthened our product portfolio, added real talent to the leadership and management team and given ourselves a great footprint outside London.”
Matthew Parker, CEO
babble cloud

Doubling its footprint

In 2018, babble cloud strengthened its portfolio and doubled its industry footprint by acquiring Birmingham-based Arden Group.

The deal added strength in mobile and IT managed services to babble’s existing market-leadership in Unified Communication (UCaaS) and cloud-based Contact Centre solutions (CCaaS). It also doubled babble’s revenue to nearly £20m and created a combined customer base of more than 1,200.

This is the second acquisition following since LDC’s investment, following the purchase of Direct Response Plus, formerly part of the Yonder Digital Group of companies.

Having built a strong business platform, we’re now keen to accelerate our scale through the acquisition of other high performing businesses with complementary technologies, geography and customers. Bringing a new investment partner like LDC on board, with its track record for supporting major acquisition programmes, will enable us to make this happen.”
Matthew Parker, CEO
babble cloud