Bridgepoint Development Capital has partnered with IDHL to provide a substantial investment to support the ambitious growth plans of the Harrogate-based connected agency group.
IDHL employs over 240 people and serves a nationwide customer base supporting businesses throughout the process of digital transformation. This is achieved through a connected group of specialist companies, recognised for their specific expertise but underpinned by the IDHL growth platform. Its expertise is centred principally around search engine marketing, eCommerce, web design and build, and automated email marketing.
This unique growth platform has enabled the group to rapidly evolve a number of recent complementary acquisitions, growing to seven brands across five locations. IDHL is now set to acquire further businesses in the UK and internationally enabling it to provide an even greater choice to clients in order to meet their digital transformation needs.
BDC’s substantial investment follows a year of record growth for IDHL, despite challenging market conditions, as clients have adapted to an accelerated digitisation of their businesses. For the year ended 31 December 2020, unaudited EBITDA was £5.6m from revenues of £19.4m, an increase of nearly 40% from the prior year.
The transaction will provide significant additional funding for future acquisitions along with international support that will enable IDHL to further expand its capabilities and reach. BDC is investing alongside IDHL’s existing management team who will remain material shareholders in the business.
IDHL CEO and Founder, Dennis Engel said “We’re very proud of the platform and team we’ve built and feel especially fortunate for the financial performance this year after such an unpredictable start, but it’s our ambition to offer far more, to both our clients and employees. In partnering with BDC, we can achieve this quicker, and further scale our business at home and abroad, and deepen our expertise with the support of one of the world’s leading Private Equity brands. There will be great opportunities for both staff and clients as a result of this. In everything we do, team dynamics are crucial and notwithstanding that BDC were the partner of choice, we couldn’t wish to be dealing with a nicer group people. We’re very much looking forward to the future.”
Commenting on the investment, Robin Lawson, partner at BDC, said: “IDHL’s connected agency platform enables national businesses to become digital disrupters thanks to its proven multi-skilled and diverse team. The digital transformation space is attractive and IDHL, with its proprietary platform, is well placed to capture further market share organically and through selective acquisitions.”
Bridgepoint were advised by JEGI CLARITY, Deloitte, Ropes & Gray and Intechnica, with Deloitte, Squire Patton Boggs and PwC advising for IDHL. Muzinich & Co have provided debt financing for the transaction.