LDC-backed CIPHR Group acquires Digits Industries
CIPHR, a leading UK provider of SaaS HR, payroll and recruitment solutions, has completed the acquisition of its strategic software partner, Digits Industries Ltd (Digits).
The move follows CIPHR Group’s successful acquisition in December 2019 of Payroll Business Solutions (PBS).
CIPHR has partnered with Digits since 2018 to provide learning management solutions to CIPHR customers, integrated with CIPHR’s people management solutions, and making it easy for organisations to create, deliver and manage engaging online learning activity. Through the partnership with CIPHR, Digits has been able to grow the use of their LMS tools substantially. The two businesses already have more than 20 mutual customers, including social care provider Certitude, housing association United Welsh, and Dudley Building Society.
Chris Berry, CIPHR’s CEO, says: “We’re absolutely delighted that Digits is the latest business to join the CIPHR Group and look forward to working with Digits’ team of learning and development experts. Digits has an excellent reputation for delivering best-in-class learning solutions to mid- and enterprise-size organisations, and many of CIPHR’s customers already benefit from the seamless integration between CIPHR’s HR software and Digits’ learning management systems (LMS). We will continue building upon this success for CIPHR, Digits and our customers.”
Colin Bull, founder and managing director of Digits, will remain with Digits. He says: “We are really excited to become part of the CIPHR Group. We’ve forged an excellent relationship with CIPHR over the past two years, and we look forward to continued success at a time when the market for online, accessible-anywhere L&D solutions is only set to grow.”
Berry added: “CIPHR has continued to perform strongly this year and has been able to capitalise on the move to increased remote working. CIPHR Connect is a compelling proposition for customers and the business continues its impressive growth journey. We expect to achieve annualised recurring revenues of circa GBP15 million by the end of 2020. Since we acquired PBS late last year, we have further invested in the business to not only grow the customer base but also to develop and expand our team of exceptional people. We wish to achieve the same success with Digits’ team of learning experts and continue to deliver exceptional service to our customers.”
Chris Baker, investment director at LDC, says: “Since partnering with CIPHR we have worked closely with Chris and the team to help them deliver a strategy of organic growth, expansion of the software offering and carefully identified acquisitions. CIPHR Con
nect continues to enhance the overall customer proposition by partnering with complementary software providers to offer a first-in-class holistic HR management solution.”
Since July 2018, LDC-backed businesses across the UK have acquired more than 45 companies with a total enterprise value of over GBP