A digital records firm headquartered in Wolverhampton has been acquired by AIM-listed Restore in a £61 million deal.
EDM Group is a B2B outsourcer for organisations in the financial, insurance, healthcare and automotive sectors requiring information risk management and digital transformation.
It operates throughout the UK and provides records information management, digitisation, digital mailrooms and digital automation solutions to its customers.
The acquisition is described as “transformational” for Surrey-based Restore’s digital business and consistent with the group’s strategic priorities to expand its business through acquisitions.
Restore has also announced a placing to raise approximately £40 million to reduce the group’s debt and to fund working capital and general corporate purposes.
Charles Bligh, Chief Executive of Restore, commented: “I am delighted with the acquisition of the EDM UK business and the value this will create for shareholders.
“EDM is a business that is well known to us, it is well invested with a loyal customer base and a terrific team of over 430, each of whom we welcome into the Group today.
“Bringing EDM’s scale and capabilities together with ours will deliver even better offerings for customers and build an even stronger UK player in the management of physical and digital data.
“This acquisition is in line with the growth strategy of the business outlined over the last two years, which is to grow our Record Management business and to enhance the product portfolio and market share in Restore Digital.”
The Fieldfisher team advising Restore was led by Manchester corporate partner, David Bowcock, who said: “We are pleased to have assisted Restore on yet another significant acquisition as it continues to expand its footprint in record management.
“The need to convert physical records to digital format remains a business-critical issue in many sectors, even more so since the pandemic, and we continue to support Restore in its strategy to consolidate document management service providers within the digital arm of its business.
“2021 has so far been extremely busy for M&A and fundraisings by listed clients looking to capitalise on the Covid-19 economic recovery.”