Inflexion preparing autumn sale of IT specialist FDM as value soars to £200m
Mark Leftly is political correspondent at The Independent on Sunday and associate business editor across the Independent titles. He writes a weekly column, Parliamentary Business, published on a Wednesday, that covers politics and the City. He is a multi-award winning reporter and was named Press Gazette's business magazine journalist of the year prior to joining The Independent on Sunday.
Tuesday 05 June 2012
An IT group that was taken private barely two years ago is set to go on the market for £200m – six times the price paid by its current owner.
Inflexion Private Equity bought Brighton-based FDM Group, which provides high calibre IT consultants to blue-chip companies like HSBC, Virgin Media and British Airways, for just £33m in early 2010.
However, the company has grown strongly since Inflexion delisted itfrom the junior Aim stock exchange, with operating profit up an impressive 50.9 per cent to £16.3m last year, off revenue that had increased 16.2 per cent to nearly £100m.
Major companies have been outsourcing much of their IT consultancy work to cut costs, which has led to FDM being recognised by a Sunday newspaper as one of the 20 fastest growing mid-market private equity-owned groups in the UK.
The Independent can reveal that Inflexion is close to hiring a corporate adviser to sell the business, with KPMG favourite to bag the work. Rivals believe the "Big Four" accoun-tant is already in place but sources close to the process insist a formal appointment has not been concluded.
It is unlikely that a sales process will start until after the summer. This Jubilee weekend, the European Football Championships and, in particular, the London 2012 Olympics are delaying a number of sales processes until at least September. August is typically a write-off for auctions as so many potential private equity and trade buyers, plus their City advisers, go on holiday then.
A private equity source said there was likely to be "an explosion" of deals in the autumn – at the weekend it emerged that Sir Ronald Cohen's Bridges Ventures has just hired boutique adviser McQueen to sell The Gym Group for north of £100m.
FDM has nine offices in sevencountries, including Germany andthe US. The firm is the UK's biggestIT graduate employer, hiring 1,000recently qualified people a year – four times as many as IBM and twice that of Accenture.
- 2 Moscow voted the world's unfriendliest city
- 3 The excuses your boss is most likely to believe when you call in sick
- 4 I'm pansexual – here are the five biggest misconceptions about my sexuality
- 5 More than 11,000 Icelanders offer to house Syrian refugees to help European crisis
The excuses your boss is most likely to believe when you call in sick
Bono's group has made more money from Facebook investment than from all his music
Three-year-old ultra-Orthodox Jewish children told 'the non-Jews' are 'evil' in worksheet produced by London school
Wikipedia rocked by 'rogue editors' blackmail scam targeting small businesses and celebrities
More than 11,000 Icelanders offer to house Syrian refugees to help European crisis
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
Senior British politicians tell David Cameron: When dead children are being washed up on beaches, it's time to act
Jeremy Corbyn calls Osama bin Laden's killing a 'tragedy' - but was it taken out of context?
If these extraordinarily powerful images of a dead Syrian child washed up on a beach don’t change Europe’s attitude to refugees, what will?
If you're not already angry about the refugee crisis, here's a history lesson to remind you why you really should be
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
iJobs Money & Business
£14000 - £16000 per annum: Recruitment Genius: This company was established in...
£20000 - £25000 per annum + OTE 40k: SThree: SThree are a global FTSE 250 busi...
£20000 - £25000 per annum + competitive: SThree: SThree are a global FTSE 250 ...
Voluntary and unpaid, reasonable expenses reimbursable: Reach Volunteering: St...