Lyceum Capital, the B2B services and tech investor, has signalled another strong year. The firm completed three new platform investments and nine add-on acquisitions, worth a combined total of £165.4m.
Ten of these transactions were sourced wholly off-market – from long-standing relationships with management teams and using the firm’s extensive sector knowledge.
The platform investments include the acquisition of Newark-based managed cloud service provider Timico, in an off-market deal worth £50m. The business was recently ranked in the Sunday Times Fast Track and plans to increase revenues through investment in product innovation, sales and marketing, as well as targeting strategic acquisitions.
During a busy summer period, Lyceum completed the £44m acquisition of fire safety compliance business Churchesfire headquartered in Southampton. Lyceum’s investment and accelerated add-on strategy will help the company to grow into a nationwide market leader. The third platform investment for Lyceum in 2017 was a £20m commitment to an IoT and M2M platform, starting with the investment in Cheltenham-based Wireless Innovation.
All three platforms have either completed or are in exclusivity to complete their first add-on acquisition.
2017 also saw the firm realise its investment in cybersecurity business Clearswift to a European strategic trade buyer with returns of over 3.8x. This represents another successful exit in the software and technology space for Lyceum.
The firm, which typically invests between £10m and £75m in entrepreneurial growth companies, has continued to build its team with the appointment of Chris Rixon as Head of Digital and Anthony Greensmith as Principal in the North.
Jeremy Hand, Managing Partner at Lyceum Capital, said: “It has been another active year for investments, both in terms of platform deals and add-ons across our portfolio. The team has continued to develop its reputation in the industry for building market leading companies through buy-and-build strategies and we are proud to have completed more than 115 add-ons to date.
“We are excited about the opportunities the UK’s wealth of ambitious businesses bring. The portfolio as a whole has seen recurring revenues grow at more than 20% in the year and has achieved EBITDA growth of over 30%. This only serves to highlight the extensive potential UK companies have. We will continue to use our experiences to help these businesses realise their full potential.”