Dunedin backs £43m IT buyout

The mid-market firm’s takeover of Trustmarque, bought from UK-based LDC, comes as it nears a final close for its latest vehicle.

London-based Dunedin has acquired Trustmarque Solutions, a UK provider of IT services. 

The business, previously owned by fellow mid-market firm LDC, will be bought for a total consideration of £43 million (€51 million, $67 million). LDC had originally invested £10 million in the company, when backing its £30 million management buyout in 2006. 

Headquartered in York, UK, Trustmarque designs and distributes technology solutions from developers such as Microsoft and McAfee. Its products and services aim to optimise IT usage, enhance infrastructure performance and manage security. The company, which now counts 180 employees, has revenues of around £130 million. 

Trustmarque sells IT solutions
to public and private clients

Dunedin’s capital will be used to develop Trustmarque’s product range and customer base, Dougal Benett, a partner at Dunedin, told Private Equity International. The company, which has already established a strong presence in the public sector, will aim to develop new relations with private institutions, he said. 

The deal comes at a busy time for LDC, the buyout arm of Lloyds banking group. The firm has made 10 investments since the beginning of year, and sealed four exits.

It also follows the £34.5 million acquisition of oil services business Premier Hytemp by Dunedin, announced in December, as well as three exits by the firm last year. These came on top of 17 bolt-on deals completed by its portfolio companies since 2011. 

The firm is currently raising its latest vehicle, Dunedin Buyout Fund III, with a target of £250 million. The fund held a first close last December on £240 million.