Reading digital services provider secures multi million pound investment
Foundation SP (FSP), a specialist digital services provider, has secured a multi-million-pound minority investment from leading mid-market private equity firm LDC.
Headquartered in Reading, FSP is an award-winning provider of digital services to large enterprises and public sector organisations. Its portfolio of cloud, productivity, data and artificial intelligence offerings alongside managed services delivery are supporting high-profile clients across a range of sectors.
LDC has backed FSP’s ambitious management team, led by Simon Grosse (Chief Executive Officer), Simon Walker (Chief Customer Officer), and Tim Ebenezer (Chief Digital Officer). The team have already successfully grown the business to 80 employees and won a number of awards in recognition of its working culture. It is currently ranked number 1 in the Great Place to Work UK® Best Workplace medium category.
The investment will boost FSP’s growth strategy, enabling it to expand its client base and digital and software services, as well as providing an opportunity to explore complementary acquisitions.
The investment was led by Investment Director Chris Morris and LDC’s Head of South Lawrence Dean, who will join the board as Non-Executive Directors. LDC’s Head of Value Creation Partners Richard Kirby will also continue to work closely with the existing management team to support strategy development. Also joining the board as Non-Executive Chair is Sharon Baylay, who brings extensive executive experience and a network encompassing brands including Microsoft and the BBC.
Simon Grosse, CEO at Foundation SP, said: "This deal marks a key next step in Foundation SP’s growth journey. I’m extremely proud of all of our employees who have enabled us to build such strong customer relationships and an incredibly successful model. We know that partnering with LDC will help us to scale while remaining true to our culture and ethos.”
Chris Morris, Investment Director at LDC, said: “We’ve enjoyed getting to know Simon and his team over the past 16 months, familiarising ourselves with their business and ambitions for the future. The business has an impressive growth plan and a highly experienced team, and we knew FSP was a firm we wanted to back. We’re excited to help them become a recognised and industry-leading digital transformation brand.”
LDC recently partially exited communications and cyber security serviced provider Babble, in a deal that valued the business at £90million, following a successful buy and build strategy including four bolt-ons in 2020 alone.
This transaction also marks the LDC South team’s third new deal of the year, following investments in James & James in March and Aker Systems in July.
LDC was advised by James Cowper Kreston, Shoosmiths, Armstrong Transaction Services and BDO.
Foundation SP was advised by PwC, Gateley Legal and Frazer Hall
