Lyceum Capital’s Adapt Makes First Add-on Acquisition

UK-based Lyceum Capital portfolio company Adapt, an IT managed services provider, has acquired its first add-on business eLINIA, a provider of cloud computing and infrastructure outsourcing, in a 13 million pounds ($20.7 million) transaction. Since Lyceum’s £30 million investment in September 2011, Adapt has appointed Stewart Smythe, an experienced IT services executive, as CEO, developed new channel partnerships and further developed its managed services proposition.


Lyceum Capital portfolio company Adapt, the independent IT managed services provider, has acquired its first add-on business eLINIA, a leading provider of cloud computing and infrastructure outsourcing, in a £13 million transaction.

Backed by Lyceum in September 2011, Adapt delivers enterprise-class cloud, infrastructure management and data centre services to a wide range of mid-market clients that operate business critical IT applications, including, LOVEFiLM and LCH.Clearnet.

Since Lyceum’s £30 million investment, the company has appointed Stewart Smythe, a highly experienced IT services executive, as CEO, successfully developed new channel partnerships and further developed its managed services proposition.

eLINIA, which is one of the UK’s fastest growing IT solutions providers, becomes the first add-on as part of Lyceum and management’s combined organic and buy-and-build growth strategy. The acquisition was sourced by Lyceum’s Origination team.

Based in Cardiff, eLINIA was founded in 2004 and, and is recognised for delivering extremely high quality, high security services and premium managed services solutions under three to five year contracts to a range of mid-market UK corporates with customers across a range of industries. The business, which has 65 employees and is highly focused on customer service, recorded sales of over £10 million for the year ended January 2012.

The acquisition takes the turnover of the enlarged group to approximately £50 million and adds to Adapt’s capabilities in the provision of best-in-class ‘IT Infrastructure as a Service’ solutions through its award-winning Enterprise Virtual Data Centre (eVDC). The deal also provides the business with a high quality operational centre in Cardiff.

John Jones and Justin Lewis, Managing Director and Operations Director of eLINIA respectively, will join the main board of Adapt.

Lyceum Partner Simon Hitchcock, who joined Adapt’s board following the firm’s investment in September 2011, led the deal, supported by Investment Executive Martin Squier.

Simon Hitchcock said: “As a premium managed services business with an enviable growth track record and a strong UK footprint of clients across the mid-market segments, eLINIA represents an excellent strategic fit for Adapt.

“This first add on encapsulates our acquisition strategy for the business, which is geared towards broadening its managed services and cloud-based proposition by building on its existing eVDC platform, to create the UK’s leading Infrastructure as a Service provider to mid sized corporates. It also further strengthens the management team, which has the expertise, vision and experience to ensure the business achieves its full potential.

“Our Origination team continues to identify further value generating acquisitions for the company in the fragmented managed IT services sector, which is undergoing significant growth driven by UK plc’s continued appetite for IT and communications rationalisation in the low growth environment, realised through outsourced and managed contracts.”

Stewart Smythe, CEO of Adapt, commented: “Our ongoing strategy is focused on becoming the UK’s go-to provider of pure play managed IT services and this acquisition will give us the scale, strength and breadth of offering to accelerate this journey.

“eLINIA is a small but perfectly formed premium infrastructure outsourcing business, renowned for its commitment to quality, security and customer focus. Together we’re going to make something pretty special happen in the market as we look to grow our business dramatically over the next two to three years.”

ENDS 17 April 2012

Issued on behalf of Lyceum Capital by Citypress.

Press information:

Martin Currie James Lloyd-Davies.
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Notes to editors


Legal Advisers to Adapt & Lyceum – Wragge & Co (David Marshall)

Financial Due Diligence – PwC (Chris Glazier)

Commercial Due Diligence – Latitude (Steve Hacking)

About Lyceum Capital
Lyceum Capital is an independent investment firm that invests in innovative and growing mid-sized UK-headquartered businesses; having acquired over 60 businesses in the UK and internationally over the last ten years. Lyceum plans to invest a further £300 million in the UK over the next two to three years.

Lyceum Capital makes highly targeted investments in mid-sized businesses with the potential to become larger participants in fragmented and growing sectors; and has a strong track record across a number of industries.

Lyceum Capital works alongside management teams to increase scale by driving growth through investing in infrastructure and improved operations as well as sourcing and funding complementary acquisitions in the UK and internationally. Through a combination of investment, operational and strategic input Lyceum Capital helps management build robust and successful businesses with good long-term growth prospects.

About Adapt
Adapt helps customers navigate the evolutionary stages of their computing environment towards affordable, efficient, sustainable virtual and cloud-based solutions that grow in line with business.

Adapt’s integrated services offering spans the entire IT infrastructure, including network connectivity, resilient data centre services, shared services, virtual server provisioning, virtual desktop services and Software as a Service, underpinned by flexible, OPEX-based commercial models.

About eLINIA
eLINIA is a leading provider of Cloud Computing services, secure managed hosting and infrastructure outsourcing and is one of the fastest growing ICT solutions providers in the UK.

eLINIA’s innovative customer service structure, combined with the highest level of security and infrastructure management provision commercially available in the UK market, enables it to provide an exceptional level of responsiveness, agility, security and service to its customers.