Livingbridge sells Giacom to trade

Katharine Hidalgo
19 November 2020

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Livingbridge has sold cloud services marketplace Giacom to trade buyer Digital Wholesale Solutions.

The deal marks the exit for minority shareholder LDC, which has been invested in Giacom since 2016.

Giacom was part of Livingbridge 6, which closed on £660m in September 2016. This is the fund's first realisation, according to Unquote Data.

Bidders for the company included Hg, among a number of other trade and private equity bidders, according to Unquote sister publication Mergermarket. The process, which entered the second round of bidding in September 2020, saw the asset marketed based on a run-rate EBITDA of £6-7m and £50-60m revenues, according to the report.

Digital Wholesale Solutions is a Brierfield-based IT service that offers voice, connectivity, IP communications, transport, cloud and product supply services.

Previous funding
LDC backed the management of Giacom to acquire the company in a management buyout transaction for an undisclosed consideration in 2016. Giacom's management team held a majority stake in the company following the deal, with LDC holding a significant minority.

Livingbridge 6 backed another management buyout in the company in 2017.

Company
Founded in Hull in 1999 as an internet service provider, Giacom now offers a platform to procure cloud software, infrastructure and IT support services. It generated £35.5m in revenues in the year ending on 31 July 2019 and employs 70 people.

Advisers
Vendor – Alantra, James Chapman-Andrews, Oliver Norman, Jamie Dickson, Milan Vashi (corporate finance); Pinsent Masons (legal); PwC (commercial due diligence); KPMG (financial due diligence).