• Acuity advises LDC on investment into network performance & security specialist Phoenix Datacom

    INVESTMENT

Leading mid-market private equity investor LDC, has backed the management buyout of data and network security specialist Phoenix Datacom.

The partnership with LDC will support the existing management team – led by Managing Director, John Carson – to expand Phoenix Datacom’s suite of hardware and software products and related services to help its enterprise customers further enhance their cyber-security. LDC’s backing will also help the team to explore complementary acquisitions.

Buckinghamshire-based Phoenix Datacom provides solutions and services to improve on-premise and cloud application performance and cyber-security for major UK organisations across a range of sectors. Established in 1984, it has a list of longstanding blue-chip clients which includes leading financial institutions, network operators, media businesses, broadcasters and public sector organisations.

The business plays a key role in helping organisations to build, validate and optimise their networks and secure their most critical information. With a range of solutions and a high degree of technical expertise, Phoenix Datacom is well placed to support major businesses in their digital transformation as they scale their networks and improve their defences against the increasing risk of cyber-attack. Over the past three years, its revenue has increased by 48% to more than £20million in the financial year ending March 2020.

The investment was led by LDC Investment Director, Chris Morris, Head of LDC in the South, Lawrence Dean, and Investment Executive Klara Klarowicz. The deal will also see former UK President of BT Global Services and CEO of Alternative Networks, Mark Quartermaine, join as Non-Executive Chairman. Financial details of the investment are undisclosed.

John Carson, Managing Director of Phoenix Datacom, said:

“We’re seeing a high demand from organisations wanting to ensure they have cutting edge technology to scale their networks and protect against cyber-threats. With LDC’s support we will be able to maximise this opportunity so that we can build, scale and further enhance our product and service offering. LDC’s experience of backing growing technology businesses gives us greater confidence in delivering our future growth plan.”

Chris Morris, Investment Director at LDC, added:

“The team at Phoenix Datacom has a 30-year track record of providing secure data network solutions to a blue-chip client base. This is even more impressive considering how the market’s complex landscape continues to evolve and customers need for the latest capabilities as network performance and security become ever more important. We look forward to partnering with John and the team to support the next stage of their growth journey.”

Marcus Allchurch, Partner at Acuity Advisors commented:

“I’m thrilled to have supported LDC on their investment in Phoenix Datacom, representing another great transaction for Acuity working with leading mid-market private equity. We were asked to support the LDC team as a result of our unique sector insight and perspective on the telecoms sector. No other mid-market advisors can deploy a comparable team of M&A professionals who have worked in senior roles in the telecoms industry, and I look forward to announcing more transactions in the coming weeks.”

“The team at Phoenix Datacom has a 30-year track record of providing secure data network solutions to a blue-chip client base. This is even more impressive considering how the market’s complex landscape continues to evolve and customers need for the latest capabilities as network performance and security become ever more important. We look forward to partnering with John and the team to support the next stage of their growth journey.”

CHRIS MORRIS | Investment Director
LDC

Team Members

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Marcus joined Acuity in 2014, before which he held senior leadership and corporate finance positions with some of the UK’s most successful advisory and telecoms businesses. Roles with EE, KPMG Corporate Finance and BDO Corporate Finance have seen Marcus work in the UK and across the globe with successful entrepreneurs seeking exit, and at board level with multi-national corporates looking for growth through organic and inorganic investment.

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