Inflexion reaps 16x in FDM IPO

FDM priced its IPO today (17 June) at 287 pence per share, generating £242.7m through the sale of around 84.5 million shares.

Approximately £234.7m of the proceeds were netted by FDM's shareholders, including Inflexion, which has fully exited the company. The remaining £8m secured by the company will be used to pay down its existing debt.

Inflexion had initially considered placing 75% of its stake but decided to make a full exit as a result of high investor appetite. The GP stated it had received strong interest from financial buyers but decided to pursue an IPO on the basis of the strength of the public markets.

Inflexion backed the management buyout of the AIM-listed IT services company in February 2010, in a deal valuing the business at £28.4m. At the time, the company had sales offices in London, New York, Frankfurt, Zurich and Luxembourg but has since expanded its operations to a total of 11 countries. The GP stated that FDM's oversees expansion has been the result of organic growth and team expansion into its clients regions.

Investec Bank has been appointed as sponsor, financial adviser, sole bookrunner and broker for the flotation, with admission expected to take place on 20 June.

Company
Established in 1991, FDM is a London-headquartered international IT services company with operations in 11 countries. The business specialises in the provision of outsourced IT solutions, predominantly to large blue-chip organisations.

In 2013, FDM generated a turnover of £105.6m – up from £103.4m in 2012 – with EBITDA of around £23m and profits of £14.7m. The company has 135 clients and employs 1,000 consultants.

People
Rod Flavell is CEO of FDM. John Hartz and Simon Turner are managing partners at Inflexion.

Advisers
Vendor – Investec Bank (Corporate finance).

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• Inflexion Private Equity
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