Message Direct gets LDC investment boost

By Tom Kilkelly

19 December 2023

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LDC, a private equity investor that is part of Lloyds Banking Group, is investing in Message Direct to support the company's Management Buyout.

Message Direct is an outsourced communications solutions provider to SMEs and large corporates. It was founded in 1994 and based in Ferndown, near Bournemouth.

Message Direct has over 7,600 customers and provides 24/7 support, dealing with customer leads and enquiries.

The business, which operates a number of brands including Message Direct, Jam and Verbatim, has achieved material organic and acquisitional growth during the last two years under the leadership of Duncan Strike and his team.

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LDC’s investment will support the management team’s organic growth plans, its buy-and-build growth strategy, and enable investment in new transformational technology.

As part of the transaction, experienced board members Pete Opperman and Gary West are joining Message Direct as Chairman and Non-Executive Director respectively.

The transaction was led by LDC Investment Director John Gassner and Investment Manager Trystan Cullen.

Duncan Strike, CEO at Message Direct, said: “We have a passionate and dedicated team committed to providing the best service possible which is reflected in our excellent customer reputation.

''The outsourced call answering services market in the UK is expected to continue to grow, driven by increasing call complexity and a preference for human interactions, supported by emerging technologies. With our leading quality service and strong investment in technology, we are well-positioned to capitalise on this growth.

“Over the last three years, LDC has taken the time to get to know our business and, with its track record of supporting companies to deliver successful acquisitive growth strategies, we’re looking forward to partnering with the team throughout the next stage of our journey.

''Their experience will also be valuable as we also look to integrate new technology such as artificial intelligence alongside the human voice element in the years to come.”

HMT, led by Partner Andrew Thomson and Director Ricky Lane, provided buyside lead advisory
services to LDC on their investment.

Andrew Thomson, Partner at HMT said: “We are delighted to have successfully supported LDC deliver the MBO of Message Direct. Under Duncan’s stewardship, the business has achieved impressive and profitable growth and, in partnership with LDC, the business is well positioned to exploit the exciting organic and in-organic opportunities that lay ahead. We look forward to working with Duncan, John and Trystan again on future transactions.”

By Tom Kilkelly

Tom Kilkelly started working as a freelance journalist for The Business Magazine following his graduation from UCL in 2022.

During his studies Tom became very interested in the works of Irish authors including Samuel Beckett and Flann O'Brien (Brian O'Nolan).

His current role as a freelance business reporter is his first exposure to the world of business journalism. Working at TBM has given Tom the chance to really get to grips with the goings-on in the business hive that is the South East.