LDC has backed a third management buy-out of 2013 through an investment in data centre business Node4.

The management team of Node4 has closed a buy-out of the data centre, managed IT and communications business.

Derby-headquartered Node4 has closed the deal so that it can finance the next stage of its growth.

It will now be completing a new data centre development as well as supporting the ‘potential’ acquisition of complementary businesses in the data centre and cloud services markets.

Through the transaction, certain of the co-funding shareholders will fully exit the business.

Andrew Gilbert, managing director of Node4, comments, ‘LDC’s investment and support brings additional strategic input and financial backing to our business and reflects the confidence both parties have in Node4’s future potential.

‘Looking forward, we anticipate that LDC’s support will allow us to further strengthen our UK regional market-leading position, invest for future growth both organically and through acquisitions, as well as continuing the provision of high quality data centre and cloud services for all our customers, existing and new.’

The management buy-out (MBO) is the third that LDC has been involved in during 2013 following its backing of restaurant group D&D London’s April £50 million buy-out and involvement in claims management software company Validus-IVS’s £12 million deal.

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LDC regional managing director Martin Draper says that LDC is partnering with a ‘high-quality’ management team led by Andrew Gilbert.

He adds, ‘The company provides a high-end service to its regional customer base, and is supported by a well-invested infrastructure. 

‘Going forward, we will work closely with the team to execute the next phase of the business’ growth and development.’

As part of the deal, the existing management team will be further supported by the appointment of David Goldie as non-executive chairman and Bernie Waldron as non-executive director. Goldie has previously held positions has chief executive of TalkTalk Group and chairman of Opel Telecom whilst Waldron has held senior positions at IBM.

LDC has now made eight investments in 2013 worth £149 million in new funding, together with further £40 million of capital to support portfolio business acquisitions.