Private equity firm LDC has exited its investment in contact centre technology and services group Connect Managed Services as part of a deal to merge the business with G3 Comms.
The transaction creates a group with combined revenues of more than £55 million.
LDC first backed the management buyout of Connect in 2014 to accelerate its expansion in the UK and overseas through technology investment and acquisitions.
Since then Connect has made a series of acquisitions that have provided significant scale and tripled revenues from £9.7 million to £30 million for the year ending December 2018.
In 2017, Connect acquired PC-1, which manages some of the largest contact centres in the UK for customers such as NSPCC, Northumbrian Water and Vodafone. This was followed in 2018 by the acquisitions of specialist customer engagement consultancy Cool Harbour and US-based technical and engineering support firm UVN.
Alex Tupman, CEO of Connect Managed Services, who will lead the combined group, said: “The merger of G3 and Connect brings together two businesses with highly complementary capabilities which will enable our combined clients to derive significant benefits from the newly acquired skills provided by the enlarged team, together with the ability to offer an extended portfolio of specialist and proven products and services.”
Chris Coulton, Portfolio Director at LDC, added: “Alex and the management team have done a fantastic job of growing the businesses year on year since we first partnered with the firm back in 2014. They have delivered a clear growth plan having scaled the business through investment in research and development and establishing a greater presence in international markets through acquisitions.”