Bowmark Capital has agreed to realise its investment in Focus Group, a telecoms and IT services provider to SMEs, to Hg.
The mid-market private equity firm, which acquired a 25% stake in 2020 at a valuation of £225 million, has financed a string of acquisitions which saw Focus Group treble revenues and broaden its coverage across the UK.
Focus Group, founded in 2003 by Ralph Gilbert and Chris Goodman, has now made 21 acquisitions. It has also seen double-digit organic growth since the Bowmark deal.
It now serves approximately 30,000 SME customers, with revenues in excess of £250m and over 900 staff.
The new transaction is subject to regulatory approval. Sky News reported last week that any prospective deal could value Focus at almost £800m.
“We have an incredible team at Focus and this investment is a further endorsement of our strategy,” said Goodman.
“Bowmark has been a great partner in helping us to capitalise on the company’s multiple growth opportunities over the last four years and we now are well-placed to continue the next phase of the company’s development.”
Bowmark partner Tom Shelford commented: “We invested in Focus Group in 2020 due to its exceptional record of growth and service excellence, and its outstanding management team.
“Since then the company has delivered industry-leading organic growth and a highly successful acquisition strategy, which is testament to the calibre of its leadership team.”