Inflexion sees Red with sale to Dunedin

Mid-market private equity investor Inflexion Private Equity has agreed to sell portfolio company Red Commerce to Dunedin in a secondary buy-out valued at £44 million.

The exit represents a multiple of over 4.4 times for Inflexion’s investors and is its eighth exit from its 2003 Buyout Fund.

Inflexion led the £15 million management buy-out of global IT resourcing specialist Red in December 2005.

Since then, Red has expanded internationally, opening offices in Munich, Zurich and Stockholm, and has invested in its business development function. The business also developed a consultancy service line, RedSolutions.

Inflexion investment director Andrew Mainwaring led the sale process, commenting, ‘We are proud that during the period of our ownership Red has more than doubled in size, materially expanded its geographic reach, deepened its service offering and negotiated the toughest trading period in recent history unscathed.’

In the time since Inflexion’s investment, profits at the SAP (standard assessment procedure) recruitment company have grown by 113 per cent and staff numbers increased 40 per cent.

Richard Vercesi, chief executive of Red, and a lead member of the secondary buy-out team, says, ‘Business growth will come by further enhancing relationships and services to our existing clients base, new customer acquisitions, continued focus on service differentiation, strengthening our geographic footprint in existing markets by opening additional regional offices, expanding our international office network in line with SAP’s growth plans and the continued expansion of RedSolution, our SAP advisory, implementation and enablement service.’

Inflexion invests in high growth companies that operate in expanding markets across a range of sectors.

Private equity firm Dunedin specialises in the UK mid-market.

Todd Cardy

Todd Cardy

Todd was Editor of between 2010 and 2011 as well as being responsible for publishing our digital and printed magazines focusing on private equity and venture capital.

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