Bristol-based HR and payroll software provider secures £2 million investment
BGF (Business Growth Fund) – the UK’s most active investor – has invested £2 million in XCD, the cloud-based HR and Payroll software provider, to support its organic and acquisitive growth strategy.
Founded in 2011, XCD has grown to have more than 30,000 users across 35 countries benefitting from its range of Salesforce-powered services. The Bristol-headquartered tech innovator has a growing workforce of more than 70 employees delivering HR and Payroll solutions for clients spanning not-for-profit, private and public sectors.
XCD received investment from renowned UK tech entrepreneur and investor Vin Murria OBE in 2015, who also took on the role of company Chair. CEO Simon Fowler joined the business in 2017 to drive a new growth strategy for the business.
BGF’s financial backing will support XCD’s ambitious expansion plans, bolstering its sales and marketing capabilities and enabling the exploration of strategic acquisition opportunities, utilising the investment partner’s extensive M&A experience in the IT software and services industry.
BGF has invested £335 million in more than 50 software and IT services businesses since 2011. It recently announced the exits of web hosting company Miss Group, following a highly successful buy and build strategy, and Chippenham-based Vsyiion Group, an IT services company. During BGF’s investment tenure, these companies generated a 340 per cent and 100 per cent increase in EBITDA respectively.
Simon Fowler, CEO of XCD said: “We are extremely excited to be partnering with BGF with this investment. It not only means our plans are funded, but also gives us validation that an investor with a reputation such as BGF’s believes in what we have achieved up to this point.
“It was clear to us from the outset that BGF was a great match given the team’s extensive experience in the tech sector. We felt they could clearly see what we are trying to achieve in building on the momentum we have created as the UK’s only HR and Net Payroll solution on the Salesforce platform.”
Alex Snodgrass, an investor at BGF who will join the board of XCD, said: “XCD has built an industry-leading offering which has fuelled an impressive growth trajectory in recent years. With high profile clients spanning a multitude of sectors and a proven track record of success, the business is poised to build on its growth to date and realise its full potential on a global scale.
“The value of XCD’s remotely accessible, cloud-delivered HR software cannot be understated amid the challenges presented for organisations by the Covid-19 pandemic.”
The deal was led for BGF by Alex Snodgrass and James Skade.
The advisors to the transaction were:
BGF: Penelope Garden and Harriet Chang of Reading-based Field Seymour Parkes (Legal). Steve Lawrey of Maidenhead-based Wilson Partners (Tax)
XCD: Moorcrofts (Legal)
