Scottish MSP kicks off another year of acquisitions with LDC investment

LDC replaces growth capital investor BGF, which first invested in Kick in 2021

LDC, the private equity arm of Lloyds Banking Group, has injected a substantial investment into Kick ICT, an independent Scottish IT managed service provider.

This move aligns with LDC's broader strategy for nationwide expansion within the UK.

Notably, the transaction marks a successful exit for BGF, the growth capital investor that has been supporting Kick ICT since 2021.

Headquartered in Bellshill, North Lanarkshire, the MSP delivers IT managed, communication, and digital transformation services to over 1,000 clients spanning various sectors.

With a workforce exceeding 170 employees, the company focuses on Microsoft and Infor business and finance solutions, coupled with modern infrastructure, cloud services, and IT support.

Established in 2015, Kick ICT has grown substantially in the past few years, organically and through several acquisitions.

In November 2023, it added Dundee-based C2 Software Limited as its ninth acquisition, expanding its specialist Microsoft Dynamics offerings across the UK.

LDC's investment aims to propel Kick ICT's growth across the UK through further buyouts, particularly targeting businesses in Scotland and the North of England that complement its services.

The investment firm expresses confidence in Kick ICT's existing management team, led by CEO Tom O'Hara (pictured) and group sales director Alan Turnbull, both boasting over 30 years of industry experience.

Geoff Neville will continue in his role as chairman.

LDC's investment directors Lee Donaldson and Aaron Lawson-Clark, along with investment manager Emma Borrie, spearheaded the investment.

"Our business has achieved exceptional growth over the last few years. We've continued to invest in our technology and people, and brought a number of exciting, innovative companies into the group to expand the range of services and levels of expertise that we provide to our customers, commented Tom O'Hara, CEO of Kick ICT.

"The team at LDC have a great deal of hands-on experience in helping businesses like ours to grow through acquisition, making them the perfect partner as we expand our presence in Scotland and across the UK."

Lee Donaldson, investment director at LDC in Scotland, added: "The rapid pace of digitalisation across the economy means dynamic businesses like Kick ICT will be at the forefront of growth across the UK ICT sector in the years ahead.

"Tom and Alan are committed and ambitious founders, and we're excited to support them, alongside the rest of the management team, as they continue their impressive run of acquisitions to drive growth and expand the business outside Scotland."

Anderson Anderson & Brown (AAB) and MBM Commercial provided advisory services for Kick ICT, while PWC, Pinsent Masons, BDO, and Armstrong advised LDC on the transaction.