Bowmark Capital, a mid-market private equity firm, has agreed to sell its stake in Node4, a provider of hybrid managed cloud and integrated IT solutions, to Providence Equity Partners.
The transaction also marks an exit for mid-market private equity investor LDC, which first invested in Node4 in 2013 and re-invested for a minority shareholding alongside Bowmark.
Over the past five years, Node4 has doubled its sales and profits, achieving strong organic growth through significant new customer wins and the provision of a broader range of information and communications solutions to its existing clients. During this period, significant investment has been made in people, systems, skills and the product portfolio, which has uniquely positioned Node4 to capitalise on the opportunity for cloud-led digital transformation growth.
Node4’s growth has been supported by three strategic acquisitions which have further enhanced the company’s technical capabilities and provided access to new vertical markets. Most recently last month Node4 acquired Starcom Technologies Limited, the MSP division of K3 Business Technologies Group (K3) – marking the largest acquisition by headcount in Node4’s history. Node4 is now better positioned to deliver enhanced cloud managed services throughout the UK in addition to expanding its operational presence in Scotland, the North West and South East England.
Bowmark partner Stephen Delaney says: “Since 2016, Bowmark has worked closely with Node4’s chief executive Andrew Gilbert and his team to broaden the company’s product offering, enhance the business platform and accelerate growth. The exceptional quality of Node4’s people, infrastructure and technical expertise will ensure that the company continues its successful record with its new financial partner.”
Gilbert says: “I am grateful for Bowmark’s help and support over the last five years, which has been instrumental in supporting Node4’s expansion and accelerating the company’s growth. We are excited to be working with Providence as Node4 continues to build momentum and swiftly moves on to the next stage of its ambitious growth journey. We will continue down our well-proven path of organic growth, building on Node4’s best-in-class systems and supplementing this with exciting strategic acquisitions.”
Andrew Tisdale, Senior Managing Director at Providence, says: “Node4 has an outstanding management team and its core focus on exceptional service has continued to deliver impressive organic growth. Recent acquisitions and an ambitious growth plan add to Node4’s appeal as an investment opportunity.” Michael Vervisch, Managing Director at Providence, added: “We are excited to support Andrew and his team in the next stage of the company’s journey and believe that Providence will provide the catalyst the company needs to scale in line with management’s ambitious vision.”