Private equity firm Hg has invested in IT services provider Focus Group, facilitating the exit of Bowmark Capital, which held a significant minority stake since 2020.
The terms of Hg's deal were undisclosed, but a recent Sky News report revealed Focus Group's £800m sale, netting founders Chris Goodman and Ralph Gilbert over £100m.
Focus Group serves around 30,000 SME customers. Hg's investment aims to fuel the company’s organic growth, mergers and acquisitions (M&A), and product development.
Goodman said: “Hg recognises the commercial opportunity that lies ahead and the capability of the Focus team. It also understands that it is the culture we’ve built at over the past 20 years that is the foundation of our success."
Gilbert added: "Hg has demonstrated its ability to create value using its experience in backing companies that sell business services to SMEs.
"Hg shows a deep understanding of how to maximise and accelerate growth using data and AI – this resonated with us.
"We also share well-aligned views on the future of the ICT industry in terms of product and future M&A opportunities."
Nick Jordan and Joris Van Gool, Partners at Hg, commented: "The long-term trends in small business technology adoption provides Focus Group with a great opportunity to continue its growth trajectory by offering a one-stop-shop for ICT for UK SMEs.”
