LDC supports management buyout of cloud computing and data storage provider Node4

Investment set to accelerate growth for 2010 Young Gun Andrew Gilbert

The mid-market private equity house Lloyds Development Capital (LDC) has supported the management buyout of the UK’s leading regional data centre, managed IT and communications specialist, Node4.

Specialising in institutional buy-outs, LDC backs ambitious management teams who are looking for between £2m and £100m of equity.

The transaction will enable the co-founding shareholder, who has not been disclosed, to fully exit the business.

Former Growing Business Young Gun Andrew Gilbert, Node4’s existing managing director and co-founder, will retain a significant shareholding.

Node4 specialises in providing data centre, managed IT services and cloud services to around 700 high-growth small and medium-sized businesses across the UK.

Headquartered in Derby, the company which was formed in 2004, runs data centres in four UK locations with over 60 employees and boasts an annual revenue of £13m.

The company claim the investment will yield further growth, enabling the development of new data centres and potential acquisitions of complimentary services and markets to meet the growing demand from businesses within the UK for hosted IT services.

The deal was led by LDC’s regional managing director, Martin Draper, along with investment directors Andy Lyndon and James Robinson. Draper will join the board with immediate effect.

The equity house formed the transaction with the support of KPMG, who provided financial and tax due diligence, and Browne Jacobson, who acted as legal advisers.  The vendors were advised by PwC Corporate Finance and Pinsent Masons.

The buyout was also supported by the structure finance team at RBS Birmingham who provided a package of senior debts plus growth capex facilities and were advised by Eversheds.

The deal is LDC’s eight investment of the year and follows its major funding rounds in 2012 of £300m across 18 investments.

Commenting on the investment, Gilbert stated:

“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.”

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