Debt Advisory

Message Direct

Debt Adviser to private equity firm LDC on the management buyout of leading outsourced communications solutions provider, Message Direct.

The deal

Our Debt Advisory team has advised private equity firm LDC on its investment into Message Direct, a leading outsourced communications solutions provider to SMEs and large corporates.

Established in 1994 and based near Bournemouth, Message Direct provides 24/7 support to over 7,600 customers, dealing with customer leads and enquiries. The business, which operates a number of brands including Message Direct, Jam and Verbatim, has achieved material organic and acquisitive growth during the last two years under the leadership of Duncan Strike and his team.

The FRP Corporate Finance team were appointed as exclusive Debt Advisers to assist the transaction in securing senior debt facilities to support the acquisition and provide further committed facilities in support of Message Direct’s continued buy and build strategy within the fragmented market it operates. The team was led by Partner Simon Sherliker and supported by Director Stuart Sweeney, Senior Manager Amit Bagga, and Manager Brad Gayler.

Funding was provided by way of a senior banking club comprising Virgin Money and HSBC. This optimal financing solution will ensure funding capacity and provide a runway for future growth.

Simon Sherliker, Partner at FRP Corporate Finance, said: “We are delighted to have played our part in successfully supporting LDC deliver the MBO of Message Direct and in securing a financing solution that will enable the business to continue its impressive track record of organic and in-organic growth.”

John Gassner, Investment Director at LDC, said: “Message Direct is a leading provider of outsourced telecommunication solutions with an ambitious management team, operating in a growing and fragmented market. We are excited to support Duncan and his team as the business expands through further acquisitions, enhanced customer growth and investment in technology.

Duncan Strike, CEO at Message Direct, said: “We have a passionate and dedicated team committed to providing the best service possible which is reflected in our excellent customer reputation. The outsourced call answering services market in the UK is expected to continue to grow, driven by increasing call complexity and a preference for human interactions, supported by emerging technologies. With our leading quality service and strong investment in technology, we are well-positioned to capitalise on this growth.

Deal summary

Date:

December 2023

Sector:

Business services

Deal type:

Management or Leveraged Buyout Financing

Deal size:

Undisclosed

We are delighted to have played our part in successfully supporting LDC deliver the MBO of Message Direct and in securing a financing solution that will enable the business to continue its impressive track record of organic and in-organic growth. Simon Sherliker Debt Advisory

Related team

Simon Sherliker

Simon Sherliker

  • Partner
  • Debt Advisory
  • London West End, Reading

Stuart Sweeney

Stuart Sweeney

  • Director
  • Debt Advisory
  • London West End

Amit Bagga

Amit Bagga

  • Senior Manager
  • Debt Advisory
  • London West End

Brad Gayler

Brad Gayler

  • Manager
  • Debt Advisory
  • London West End