Corporate Finance

FRP leads on sale of Babble to Graphite

FRP teams advise LDC and Babble on secondary buyout

Background

Babble provides unified technology solutions for more than 2,000 small and mid-market businesses. The company’s services include cloud collaboration and communications, cloud contact centres, cyber security, and mobile and enterprise connectivity. FRP’s Corporate Finance team had previously supported private equity firm LDC through its original buyout of Babble in 2017. Over the next three years LDC provided nearly £9 million of follow-on funding to support six acquisitions, as the firm increased turnover by 230 per cent and headcount by 200 per cent. The successful buy-and-build strategy had helped the business to expand, leading LDC and Babble to appoint FRP again, this time to conduct a full sales process.

Action

FRP’s Corporate Finance team was engaged by LDC and Babble to find a suitable private equity partner who would back Babble’s vision for future growth, in support of a secondary buyout. In addition, FRP’s Debt Advisory team undertook a comprehensive lender education process to support the private equity bids and demonstrate the strong appetite for deal support from debt providers.

Outcome

Working to a tight timescale, the team conducted a focused process resulting in an exceptional deal for all parties, with Graphite Capital securing the deal at a £90 million valuation to support the next stage of Babble’s development. LDC has retained a minority stake in the business to continue supporting the businesses objectives.

“When we chose to partner with LDC as our private equity backer, we were looking for a team with experience of working in our sector, but also one committed to supporting our acquisition strategy. LDC bought into our vision and backed us as a team to deliver it. The last three years have been transformational for Babble and we are well on our way to becoming a £100 million revenue business. We’re pleased LDC is staying with us on the next stage of our growth journey.” Matt Parker, CEO of Babble.

90

£90 million

The amount secured for Babble as a result of FRP’s sale process.

Related team

Simon Davies

Simon Davies

  • Partner
  • Corporate Finance
  • Reading, London West End

James Mines

James Mines

  • Partner
  • Corporate Finance
  • Reading

Ian Milne

Ian Milne

  • Partner
  • Debt Advisory
  • London West End, Reading