Providence Equity Partners has agreed to invest in UK-based Node4, a managed services provider. No financial terms were disclosed. As a result of this transaction, Bowmark Capital and LDC will exit their respective investments in Node4.
Derby, UK, 3rd March 2021 – Node4, a cloud-led digital transformation Managed Services Provider (MSP), today announced it has secured a new principal investor, Providence Equity Partners (“Providence”), a premier private equity firm that specialises in the media, communications, education, software and services industries. The transaction sees mid-market private equity firms Bowmark Capital (“Bowmark”) and LDC realise their respective investments.
Over the past five years, Node4 has achieved strong organic growth through significant new customer wins and the provision of a broader range of information and communications solutions to its existing clients. During this period, significant investment has been made in people, systems, skills and the product portfolio, which has positioned Node4 to capitalise on the opportunity for cloud-led digital transformation growth.
Node4’s growth has been supported by three strategic acquisitions which have further enhanced the company’s technical capabilities and provided access to new vertical markets. Most recently, in February 2021, Node4 acquired Starcom Technologies Limited, the MSP division of K3 Business Technologies Group (K3) – marking the largest acquisition by headcount in Node4’s history. Node4 is now better positioned to deliver enhanced cloud managed services throughout the UK in addition to expanding its operational presence in Scotland, the North West and South East England.
“We are excited to be working with Providence as Node4 continues to build momentum and swiftly moves on to the next stage of its ambitious growth journey,” commented Andrew Gilbert, Founder and CEO of Node4. “We will continue down our well-proven path of organic growth, building on Node4’s best-in-class systems and supplementing this with exciting strategic acquisitions. I am grateful for Bowmark’s help and support over the last five years, which has been instrumental in supporting Node4’s expansion and accelerating the company’s growth.”
Andrew Tisdale, Senior Managing Director at Providence, said: “Node4 has an outstanding management team and its core focus on exceptional service has continued to deliver impressive organic growth. Recent acquisitions and an ambitious growth plan add to Node4’s appeal as an investment opportunity. Michael Vervisch, Managing Director at Providence, added: “We are excited to support Andrew and his team in the next stage of the company’s journey and believe that Providence will provide the catalyst the company needs to scale in line with management’s ambitious vision.”
Stephen Delaney, Partner at Bowmark, said: “Since 2016, Bowmark has worked closely with Andrew Gilbert and his team to broaden the company’s product offering, enhance the business platform and accelerate growth. The exceptional quality of Node4’s people, infrastructure and technical expertise will ensure that the company continues its strong record of success with its new financial partner in what is a dynamic and rapidly growing market.”
Node4 was advised by Arma Partners, alongside Pinsent Mason LLP (Legal), PwC (Vendor Tax and Financial), Deloitte (Tax DD and Structuring), and Liberty Partners (Management).
Providence was advised by DC Advisory and Raymond James, alongside Weil Gotshal & Manges (Legal), FTI Consulting (Financial), KPMG (Tax and Structuring) and CMA Strategy Consulting (Commercial).
Node4 provides advanced, cloud-led digital transformation solutions that empower UK businesses to do more. Delivering end-to-end hybrid solutions, Node4 draws upon its broad portfolio of managed public and private cloud, security and collaboration services, as well as cloud enablers including colocation and connectivity. Modular solutions, along with transformation services, are designed to support businesses at any point in their cloud journeys. Node4 was recently included in the Microsoft Azure Expert MSP program, awarded to the most high- fidelity cloud managed service providers. Committed to exceeding customer aspirations, Node4’s teams combine technical expertise, innovation and exceptional service as a standard to meet businesses’ needs in any sector. Thanks to Node4’s fully-owned infrastructure, best-in-class integrated tooling, and strategic relationships with market-leading vendors, customers can expect access to a full range of sophisticated, scalable solutions. Node4 has nationwide capabilities, with its own data centres in Derby, Leeds and Northampton, and points of presence in London and Manchester. Key to Node4’s success is its friendly, supportive culture, with Great Place to Work® ranking it as one of the UK’s Best Workplaces™. For more information, please visit: www.node4.co.uk
About Providence Equity Partners
Providence is a premier global private equity firm with approximately $44 billion in aggregate capital commitments. Providence pioneered a sector-focused approach to private equity investing with the vision that a dedicated team of industry experts could build exceptional companies of enduring value. Since the firm’s inception in 1989, Providence has invested in more than 170 companies and is a leading equity investment firm focused on the media, communications, education, software and services industries. Providence is headquartered in Providence, RI, and also has offices in New York and London. For more information, please visit www.provequity.com.