Bridgepoint announced that Bridgepoint Development Capital IV (BDC IV), a fund focused on investing in mid-market growth businesses, strategically invested in next-generation cloud and digital transformation services provider Kerv Group.
As part of the deal, Kerv’s existing backer LDC will roll over part of its investment alongside Bridgepoint and management. And the financial terms of the transaction were not disclosed.
Kerv Group – a multi-award-winning provider of cloud-led and full-stack technology solutions and digital transformation services – caters to public and private sector clients with complex and growing IT requirements. It was founded in 2020 when LDC backed Executive Chair Alastair Mills and Group Managing Director Mike Ing to acquire and merge three initial cloud firms to prioritize organic growth, underpinned by a clear focus on employee engagement and customer experience.
This foundational merger marked the beginning of Kerv’s ambitious journey, and the key milestones achieved since then include the following:
— Sector-leading annual organic revenue growth of c.30%.
— The creation of 300 new jobs – with over 75% in technology, and 35% of those roles filled by women, surpassing the UK average of 20% for women in technology.
— Reaching a revenue run rate of over £100 million and an EBITDA run rate approaching £20 million.
— Establishing itself as a purpose-driven business with a major focus on sustainability and ESG, reflected in its market-leading Glassdoor ratings, Great Place to Work accreditations in the UK and India, and progress towards certified B-Corp status.
Kerv now employs approximately 700 people in the UK, Spain, Portugal, France, Switzerland, India, Hong Kong, Singapore, and the United States, serving public and private sector mid-market and enterprise customers, including Standard Chartered, Skipton, DVSA, and Kingfisher Group.
And this latest strategic investment builds on Bridgepoint’s long-standing interest and engagement with leading technology services businesses.
The deal closed on January 24 and it marks the fifteenth platform investment by BDC IV and its seventh in the UK.
Bridgepoint was advised by Lincoln International (Financial Adviser) Ropes & Gray (Legal Advisor), McKinsey (Commercial), Deloitte (Financial and Tax Due Diligence), Analysys Mason (Platform Due Diligence), Anthesis (ESG Due Diligence), and Marsh (Insurance Due Diligence). And Kerv Group was advised by Houlihan Lokey with Pinsent Masons as Legal Advisor. Vendor Due Diligence provided by EY (Financial), Altman Solon (Commercial) and Intechnica (Technical) and Management Advice was provided by Jamiesons.
KEY QUOTES:
“The investment from BDC represents a significant milestone in our short history. Kerv has quickly established itself as a significant player in the UK digital services market with our sector-leading organic growth. This success is underpinned by our relentless focus on employee engagement and customer experience. In BDC, we have found the best possible partner to help write the next chapter for Kerv, in terms of shared values, sector experience and a scale that matches our ambition.”
— Alastair Mills, Group Executive Chairman of Kerv Group
“We are thrilled to partner with Alastair, Mike and the senior team at Kerv Group, a company we’ve followed closely since its formation in 2020. Their approach to growth, combining leading organic development via exposure to high-growth elements of the technology sector supplemented with strategic acquisitions, positions them strongly for the future.”
“With the core Kerv platform now built, BDC’s support will help Kerv to expand its product sales, cross-selling opportunities and an increasing focus on industry verticals.
“We are excited about Kerv’s prospects for further expansion and are confident that our investment will support its journey towards becoming a global leader in the digital services sector both organically and via future M&A.”
— Robin Lawson, Partner at Bridgepoint Development Capital
“We are delighted to have new investment from BDC; it will enable us to build further on the great foundations we have laid down over the last three years and help us to take Kerv to the next level of scale. We were keen to partner with an investor whose values resonate with ours, one who shares our mission to harness the power of technology for the good of our people, our customers, our society and our planet.”
— Mike Ing, Group Managing Director at Kerv
