ECI sells Content+Cloud for 4.1x money

Harriet Matthews
10 December 2021

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ECI Partners has sold UK-based IT and digital transformation business Content+Cloud to PE-backed IT service Advania, netting returns of 4.1x money and 32.1% IRR.

Sweden-headquartered Advania was acquired by Goldman Sachs Private Equity, with previous minority shareholder Via Equity reinvesting as part of the deal.

Unquote sister publication Mergermarket reported in March 2021 that ECI had hired Arma Partners for the sale of Content+Cloud, with the company expected to be marketed based on EBITDA of GBP 10m-12m.

ECI acquired a majority stake in Content+Cloud (then known as IT Lab) in July 2016. The GP invested via ECI 10, which held a final close in September 2014 on its GBP 500m hard-cap. During the investment period, the company made several add-ons, including the GBP 24.8m acquisition of Mirus in July 2019. In addition, the company further developed its partnership with Microsoft.

The exit comes two months after ECI sold educational safeguarding software developer CPOMS to US-based Raptor Technologies, a portfolio company of Thoma Bravo and JMI Equity, as reported.

The GP announced in October 2021 that it had fully realised its 2010-vintage ninth fund, recording a gross money multiple of 3x, as reported.

Company
Founded in 1998 and headquartered in London, Content+Cloud is a managed services provider (MSP) that advises on digital transformation. The firm is a Microsoft partner and operates over platforms including Modern Workplace, Azure and Dynamics. In addition to its London headquarters, the company has offices in Manchester, Milton Keynes, Reading, Cardiff and Cape Town in South Africa.

Content+Cloud posted revenues of GBP 84.5m in the year to 31 March 2021, versus revenues of GBP 72.8m in 2019/20. It employed 325 staff in 2016, versus 800 in 2021.

People
ECI Partners – Tom Wrenn (managing partner); Daniel Bailey (investment director).
Content+Cloud – Peter Sweetbaum (CEO).
Advania – Mikael Noaksson (CEO).
Goldman Sachs – Michael Bruun (partner).
Via Equity – Benjamin Kramarz (partner).