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10/2022

LDC invests in ACORA

UNITED KINGDOM IT Services / Infrastructure & Cloud / MSP (Managed Services) REV £50–100M

Context

LDC acquired a stake in Acora, the British managed IT services provider, from Palatine Private Equity, in a transaction announced in October 2022 and financed with debt from Ares and HSBC. Palatine had invested through its Buyout Fund III in March 2020 and exited less than three years later, for a return of more than three times its investment. Over that period, Acora completed five acquisitions, the largest being the cyber security provider Secrutiny in May 2022, which let it add security services to its managed IT offer. Headcount rose from 300 to more than 550 and revenue doubled to £50–100M. The company also repositioned its proposition around customer experience and automated part of its service delivery through a digitisation programme. David Rabson stayed on as chief executive with his management team. LDC intended to fund both further acquisitions and continued organic growth. DC Advisory advised Acora, with Eversheds Sutherland as legal counsel and RSM providing additional financial support.

It is worth noting that the fund Palatine Private Equity took control of Acora through an LBO in 2020.

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Target

Acora runs the IT of mid-sized organisations on their behalf. Its teams operate and support their users’ workstations and applications, manage their infrastructure and their cloud environments, handle their migrations to cloud platforms and secure their systems against cyber threats, under long-term managed services contracts. Its customers are mid-market companies, particularly in financial services, insurance and professional services. It works from service operation centres across the United Kingdom and an office in the City of London.

Ent. Value

£50–100M

Equity Value

[members only]

Multiples

EV / Revenue

[members only]

EV / EBITDA

[members only]

EV / EBIT

[members only]

Historical Financials (GBP)

Year
Rev
EBITDA
EBIT
2022
£50–100M
[members only]
[members only]
2021
£50–100M
[members only]
[members only]

Other operations with ACORA

Other operations with ACORA

List of similar M&A transactions (Date, Acquirer, Target, Country, Sub-sector)
DateAcquirerTargetCountrySector
03/2020Palatine Private EquityACORAUNITED KINGDOMMSP (Managed Services)

REFERENCES

Revenue range: £50–100M

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of ACORA by LDC are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Target: acora

Acquirer: ldc