ISIS Private Equity has backed a £45 million buyout of Metronet, a UK internet service provider previously owned by LDC.
For LDC, the mid-market private equity arm of UK-based Lloyds Banking Group, the exit represents a 4x return after just two years of ownership.
LDC invested in Metronet, a Manchester-based provider of wired and wireless internet connectivity, in 2012. Since then the business has expanded beyond its original base across the north of England and the Midlands. Revenues increased by 98 percent and EBITDA by 83 percent during this two-year period.
Jonathan Bell, co-head of LDC in the north-west of England said the business was now “a leader in the UK internet service market”.
Chief executive Elliot Mueller, who has run the company since 2007, will continue to lead the business following this latest buyout.
ISIS said its investment would support the business “as it continues its rapid growth into new and existing territories … In the medium to long term, the company seeks to create the UK’s first ubiquitous wireless network infrastructure.”
Lloyds will maintain an interest in Metronet: its acquisition finance team is providing a senior debt facility to support ISIS's secondary buyout, and it will continue to be the company's banking partner.