Mid-market private equity firm LDC has sold its minority stake in Nottingham-based managed IT and cyber services provider Littlefish to Bowmark Capital following a three-year partnership.
The deal follows a period of substantial growth for the IT business which has almost doubled revenues since LDC came on board in April 2019 from £18.6 million to £36.4 million.
Littlefish was founded in 2003 and provides managed IT, cyber security, cloud and IT consultancy services to more than 200 customers across the private and public sectors.
Over the past three years, the business won some big new client contracts and developed its cyber security arm, which is now its fastest-growing service line.
Littlefish also opened a new office in Sheffield and more than doubled its headcount to more than 450 people across its Nottingham, Sheffield and London offices. A focus on investing in its people and culture earned the company 1 Star accreditation in the Sunday Times Best Companies to Work For list in 2020.
The transaction was led by David Bains, partner and head of LDC’s East Midlands and East of England team.
Littlefish chief executive Steve Robinson said: “The business has been on a significant growth journey over the last 12 years, which has been achieved almost entirely organically.
“With LDC’s support, we have expanded our offering to cement Littlefish as a market-leader for quality and innovation in the delivery of end user services, and we’ve continued to invest in our people.
“Their flexibility, sector expertise and financial support have helped us to build our business with confidence.”
David Bains said: “Littlefish is a stellar example of our growing tech industry here in the heart of the East Midlands.
“Its expansion is testament to the strength of the proposition that Steve and his team have developed. We’re proud to have been part of their journey during this exciting time, and we wish them every success on the next stage of their journey.”
This transaction marks LDC’s fifth successful exit from a technology business in the last 12 months and follows its recent exit from design software specialist Solid Solutions.
LDC has invested more than £250 million in more than 10 technology-led businesses in the past year, including digital transformation provider CTI Group, IT services specialist Aspire and mobile and internet of things (IoT) communications firm Cellhire.
