mynth
03/2020

Palatine Private Equity invests in ACORA

UNITED KINGDOM IT Services / Infrastructure & Cloud / MSP (Managed Services) REV £25–50M

Context

Palatine Private Equity invested in Acora, the British managed IT services provider, on 9 March 2020, through its Buyout Fund III. Chief executive David Rabson, who had acquired the business through a management buyout in 2006, stayed at its head alongside his team. At the time of the investment, Acora employed around 300 people and provided IT support and cloud services to mid-market organisations, having grown organically on the strength of its partnership with Microsoft, which let it extend its services to Azure, Office 365 and Dynamics. It had already made two acquisitions, merging with the IT support company Plan-Net in 2017 and buying the managed services provider Just Computing in 2019. Palatine backed a buy-and-build strategy aimed at adding both scale and new capabilities, alongside investment in staff and in technology. The firm went on to support five acquisitions, starting with the cloud hosting provider Veber in December 2020, and sold the company to LDC in 2022, having doubled revenue to more than £60 million and taken headcount above 550, for a return of more than three times its investment in under three years. Raymond James advised Palatine on corporate finance, with Spectrum Corporate Finance on debt advisory, and due diligence carried out by Armstrong on commercial matters, RSM on financial and tax, Xaeus Blue on IT and Cyberfort on cyber security.

ACORA, which reported an EBITDA margin of [members only] in 2020, is valued in this transaction at an EV/EBITDA multiple of [members only], to compare with the average currently observed in the TMT (Tech, Media, Telecom) sector (14.4x).

-> Deep-dive in TMT (Tech, Media, Telecom) market trends

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

£25–50M

Equity Value

[members only]

Multiples

EV / Revenue

[members only]

EV / EBITDA

[members only]

EV / EBIT

[members only]

Historical Financials (GBP)

Year
Rev
EBITDA
EBIT
2020
£25–50M
[members only]
[members only]
2019
£25–50M
[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
10/2022LDCACORAUNITED KINGDOMMSP (Managed Services)

REFERENCES

Revenue range: £25–50M

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of ACORA by Palatine Private Equity 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.

Press release: view release

Target: acora

Acquirer: palatine private equity