Lyceum Capital portfolio company Adapt has made its first acquisition since its September 2011 buy-out through the £13 million purchase of eLINIA.
IT managed services provider Adapt was initially supported by Lyceum in September 2011 as part of a £30 million acquisition aimed at providing the business with a platform to undergo a buy-and-build growth strategy.
Cardiff-based eLINIA provides similar services to Adapt to mid-market UK corporates and posted sales of £10 million for the year ending January 2012.
Founded in 2001, London-headquartered Adapt has a client base including Last.fm, LOVEFiLM and PKR and a turnover of £35 million. In 2006 the management team led a management buy-out with help from Alcuin Capital, a firm which exited to Lyceum.
As part of the deal, John Jones and Justin Lewis, managing director and operations director at eLINIA, are set to join the board of Adapt.
Simon Hitchcock, partner at London-based Lyceum Capital and board member of Adapt, comments, ‘This first add-on encapsulates our acquisition strategy for the business, which is geared towards broadening its managed services and cloud-based proposition.
‘It also further strengthens the management team, which has the expertise, vision and experience to ensure the business achieves its full potential.’
Hitchcock says that Lyceum’s Origination team, which identifies possible targets and sourced eLINIA, will continue to find ‘value generating’ acquisitions for the company.
Simon Smythe, CEO of Adapt, says the new purchase will provide the scale, strength and breadth of offering to accelerate what he describes as Adapt’s ‘journey’.
‘eLINIA is a small but perfectly formed premium infrastructure outsourcing business, renowned for its commitment to quality, security and customer focus,’ Smythe adds.