Posted on December 7, 2018 by staff

Tech exit gives investors 4.1x return


Private equity firm Maven and Scottish Investment Bank (SIB) have hailed their profitable exit from Incremental Group, delivering a 4.1x return for investors.

Incremental is a digital technology services specialist with 125 staff across UK offices in Glasgow, London, Manchester, Inverurie and Northwich.

The business helps its clients to design, implement and manage their IT infrastructure needs which include ERP, CRM, cyber security and digital applications.

Incremental has been acquired by private equity firm Dunedin from Maven and SIB, who invested in the firm in 2016.

Since their original investment, Incremental has grown significantly, with its order book increasing more than four-fold on the previous year. For the current financial year, revenue has risen 60 per cent to £6.6 million and EBITDA by 100 per cent to £1 million.

“Generating a 4.1x return in just two years stands as a testament to the Incremental management teams’ ability and ambition to build a successful digital services business, but also Maven’s capability to support entrepreneurial smaller businesses and help them achieve their growth aspirations,” said investment director Julie Glenny.

“We are proud of how we have enabled Incremental to add significant scale to the business through organic growth and key acquisitions, and we wish them every success going forward.”

Kerry Sharp, head of the SIB, added: “This is an excellent example of our investment funding helping an ambitious management team to create a business of scale.   More broadly Scottish Enterprise has been working with the Incremental team since inception supporting a range of initiatives including growing their talented workforce and we look forward to continuing this support going forward.”

Incremental has become one of the largest Microsoft Dynamics Partners in the UK, working with a range of blue-chip clients including Aggreko, Total and Scottish Leather Group.

Its sale to Dunedin will allow the business to take the next step in its evolution as it targets £60 million revenue, £10 million EBITDA and a workforce of 500 by 2022.