Trustmarque acquires Livingstone in 'first step' of midmarket growth drive

York-based IT solutions provider announces first deal since splitting from Capita

Trustmarque has acquired software asset management (SAM) consultancy Livingstone in a move it positioned as "the first step" in an ambitious midmarket growth play.

It marks the Microsoft and Cisco partner's first acquisition since it split off from Capita on 1 April 2022.

Providing clients with optimisation, audit defence and cloud migration services around major software vendors including Microsoft, Oracle, SAP and IBM, Reading-based Livingstone employs around 150 staff. It turned over £17m in calendar 2021.

Trustmarque said the deal will bolster its existing capabilities in SAM, cloud and licensing.

"This transaction is the first step in an ambitious growth strategy to accelerate the consolidation of mid-market IT services in the UK," it stated.

Founded in 2010, Livingstone had been majority owned since 2018 by Carlyle Group, which supported its growth with two 2019 acquisitions in the shape of Cloud Optics and Derive Logic.

The SAM services Livingstone provides have been in the spotlight recently as end users look to optimise their software estates in the wake of big vendor price hikes.

Capita offloaded Trustmarque to One Equity Partners for £111m last April, as part of a non-core divestment strategy. It had acquired it six years earlier for around half the price.

The York-based outfit registered invoiced revenues of £461.4m in calendar 2021. That's a 39 per cent rise on the previous year, as Capita transferred several assets into the business as it prepared it for a sale. Strong UK public software sales also contributed to the growth.

"Today marks an exciting milestone, as we welcome the Livingstone team to Trustmarque," Trustmarque CEO Ben Richardson said.

"This acquisition will enable us to leverage the data-driven knowledge of Livingstone to benefit Trustmarque's customers. Together, we are ready to collaborate to deliver superior transparency and control over our customers' IT investments."