Giacom World Networks, the Hull-based cloud IT and communications solutions provider, has undergone a management buy-out backed by LDC.

Dow Schofield Watts’ Transaction Services team advised LDC on the deal. Giacom has experienced very rapid growth over the last three years as micro SMEs have moved their software and IT solutions to the cloud to realise efficiency and cost savings. The transaction will enable the business to accelerate its growth through increased investment in its proprietary platform, the integration of additional cloud products and to expand its service provider network.

Founded by Nick Marshall in 1999, Giacom currently supports a network of more than 3,500 IT consultants, service providers and resellers via its proprietary MessageStream platform.

As part of the transaction, the management team – which will continue to be led by Mr Marshall as CEO – will remain majority shareholders, with LDC acquiring a significant minority stake.

Ed Brentnall and Catriona Lang of Dow Schofield Watts’ Transaction Services team provided financial due diligence for LDC. Catriona said: “Nick and the management team have done a fantastic job in overseeing impressive growth in Giacom’s brand, offering and financial performance. We fully expect this to continue and wish both management and LDC all the best in the next phase of the Business’ evolution.”

The transaction was led by LDC Investment Director Simon Braham and Director Jonathan Bell, and Mr Braham joins the board.

Simon Braham, Investment Director at LDC, added: “Giacom has a highly capable leadership team, a unique proposition to the market and a proven ability to innovate at pace. As a result, the business has posted impressive revenue and profit growth of more than 50 per cent per annum in recent years, despite operating in a highly competitive market.

“More than 99 per cent of UK businesses are small and medium sized, with an increasing number accessing software solutions via the cloud. With further investment, Giacom has a strong opportunity to consolidate its position in the market, enhancing the service it provides to its network of IT consultants and subsequently becoming the go-to software provider for businesses at this end of the market.

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