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LDC backs MBO of Validus-IVC, bolt-on acquisition for EDM

25 Mar 2013

software6_sqBuyout firm LDC has made two deals, having participated in the management buyout (MBO) of IT firm Validus-IVC and backed EDM Group to make a bolt-on acquisition.

LDC – which is the private equity arm of part-nationalised banking group Lloyds – has backed the £12m MBO of Validus-IVC, which supplies claims management and counter-fraud software for the motor insurance industry.

It said the MBO should finance the company’s continuing growth, while enabling its five founding investors to exit their stakes.

Martin Draper, LDC’s regional managing director, said, “With an estimated 3.5 million motor claims each year in the UK, the prospects for Validus’s future growth are extremely positive and going forward, we look forward to supporting the team as they continue to build on the recent successes, whilst helping to execute the next phase of the business’ development.”

LDC has also supported investee EDM Group’s acquisition of US peer Diversified Information Technologies (DIT), which is its fifth add-on acquisition.

Scranton, Pennsylvania based DIT provides document management services to a blue-chip customer base that includes many Fortune 500 businesses in the insurance, financial services, healthcare, and government sectors.

The enlarged group is expected to have an annual turnover of around £73m, while DIT will be rebranded as EDM America.

Earlier this month LDC backed invested more than £54m across a pair of deals in the healthcare and oil and gas services sectors and backed the £48m capital replacement of tonic water and mixers brand Fever-Tree.

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