LDC has exited its investment in Kerv following a three-year partnership, that saw the cloud services provider grow five-fold from £20m to £100m.
As part of the transaction, Bridgepoint Development Capital has invested in Kerv for a majority shareholding and LDC has reinvested £30m to support the continued growth of the business.
LDC supported the creation of Kerv in July 2020 when it backed founders Alastair Mills and Mike Ing to merge three cloud-based managed services businesses. LDC invested £22m in the initial transaction and, over the course of the next three and a half years, provided £20m in follow on funding.
During these three years, Kerv’s EBITDA grew from £3m to nearly £20m and the company’s headcount from 100 to 700.
Founders Alastair Mills and Mike Ing, alongside the rest of the Kerv management team, will continue to lead the business, supported by Bridgepoint and LDC, and plans to continue its acquisition strategy.
Ing said “This significant milestone will enable us to continue to deliver on our mission to harness the power of technology for the good of our people, our customers, our society and our planet at even greater scale.”
Aylesh Patel, Partner and Head of South at LDC, added: “Alastair, Mike and the team brought together three complementary businesses at the height of the Covid-19 pandemic and have created one of the fastest growing cloud and digital services providers in the UK.”