LDC exits tech firm Babble in £90 million MBO

Private equity firm LDC has exited cloud services technology company Babble in a management buyout which values it at £90 million.

Babble has sites in Birmingham, Leeds, Burton-upon-Trent and London, and was originally backed by LDC in 2017.

The firm has retained a minority stake in the business to support its continued growth, alongside new investor Graphite Capital.

During its three-year partnership LDC provided nearly £9 million of follow-on funding to support six acquisitions, leading to increased turnover by 230 per cent and headcount by 200 per cent.

Babble chief executive Matt Parker said: “When we chose to partner with LDC as our private equity backer in 2017, we were looking for a team with experience of working in our sector, but also one committed to supporting our acquisition strategy.

“The team at LDC ticked both boxes and delivered on their promises. LDC didn’t just buy into our business, they bought into our vision and backed us as a team to deliver it.

“The last three years have been transformational for Babble and we are well on our way to becoming a £100m revenue business.

“We’re pleased LDC is staying with us on the next stage of our growth journey.”

Chris Morris, investment director at LDC in the South, added: “We’ve been on a remarkable journey with Matt and his management team. Strong organic growth has been supported by a buy and build strategy that’s transformed the business and expanded its product portfolio.”