LDC has supported the management buy-out (MBO) of Validus-IVC as well as funding an acquisition for portfolio company EDM Group.
Norwich-based Validus provides claims management and counter fraud software services for the motor insurance industry. The MBO is said to provide the capital needed to support its continued growth as well as allowing five founding shareholders to exit the company.
The deal involves the company’s existing management team and is being led by chief executive Mike Srokowski. In the years since its 2007 foundation, the business says, it has invested ‘significantly’ in new product development.
Srokowski comments, ‘LDC’s investment, coupled with its experience and knowledge of the insurance world, means we are well placed to step up several more gears.
‘We intend to increase our rate of growth in current markets and expand into new ones. Our new products and services have been well received by the market and LDC’s investment illustrates their confidence in our ability to capitalise on the numerous opportunities that exist for profitable growth.’
As part of the transaction, LDC investment director Paul Figgins will be joining the board as a non-executive director.
Martin Draper, LDC’s regional managing director, adds, ‘With an estimated 3.5 million motor claims each year in the UK, the prospects for Validus’s future growth are extremely positive and going forward.’
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As well as supporting the MBO of Validus, LDC has gone back to portfolio company EDM Group to aid its acquisition efforts.
Outsourced information management services business EDM has bought Diversified Information Technologies, a US-based competitor, for an undisclosed amount.
The acquisition is said to bring in some 500 new overseas customers to EDM’s client portfolio, which already includes AVIS Budget EMEA, Nationwide Building Society and Grant Thornton, and takes its staff count to 1,400. DIT will be re-branded and become EDM America.
Sam Ferguson, chief executive of EDM, comments, ‘The acquisition of DIT in the current economic downturn is clear evidence that innovative companies with a sound business model that meets genuine business needs can still secure investment for growth.
‘The DIT business is a great fit for EDM. Not only does its range of services, skills and customers align well with ours, but its offshore BPO operation adds a powerful new capacity.’