A stake in tech star IP Solutions has been snapped up by private equity firm LDC

 
Lucy White
Internet Companies Vie For Market Dominance
IP Solutions offers services such as internet-based voice calls, online instant messaging and conferencing, and cloud contact centres (Source: Getty)

Communications tech firm IP Solutions, whose customers include National Geographic and Secret Escapes, has grabbed investment from LDC, the private equity branch of Lloyds Banking Group.

IP Solutions, which provides cloud-based communications services for more than 200 small and mid-sized businesses, will use the investment to start hoovering up its peers.

It plans to make several acquisitions and expand into new products, to complement its current range which includes internet-based voice calls, online instant messaging and conferencing, and cloud contact centres.

Read more: Endless buys struggling iconic luggage brand Antler from private equity firm LDC

“In recent years we have delivered strong organic growth, thanks to our focus on innovation and working with customers who are driving genuine transformation,” said chief executive Matthew Parker.

“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.”

The London-headquartered business will take on David Garman, former head of logistics giant TDG, as chairman.

Read more: Vital Ingredient gets a £8m health kick from Lloyds Banking Group's private equity arm

Alex Clark, an investment director at LDC, said that IP Solutions' management team “have an impressive track record in scaling businesses, having successfully delivered and integrated a total of 10 acquisitions in previous roles”.

The private equity firm has previously backed businesses such as Rush hairdressers, courier CitySprint and health fast food retailer Vital Ingredient.

In total, LDC has invested £1bn of equity in UK businesses over the last three years, and has generated £2bn from selling businesses in its portfolio.

This number could soon be creeping up, as City A.M. revealed last month that a number of private equity firms were vying to buy its stake in holiday park operator Forest Holidays.

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