ICT company discusses ‘active’ M&A talks as profits double – UKTech News
One of the UK’s major IT suppliers has stated that it is currently engaged in “active” merger and acquisition discussions after announcing a profit increase of more than double. Kick ICT, located in Bellshill, specializes in providing IT solutions and network infrastructure services and recently acquired C2 Software, a Microsoft Dynamics specialist, for an undisclosed amount, marking their ninth acquisition in eight years. M&A activities remain a key part of Kick ICT’s strategic approach, with ongoing discussions happening in the market.
The company reported a profit surge to £1.4m for the year ending in September, with a corresponding 11% growth in turnover to £28.7m. Kick ICT expanded its staff to 175 employees and highlighted the internal application of AI that led to substantial productivity improvements within the organization. In addition, Kick ICT obtained a significant investment from LDC, a private equity company affiliated with Lloyds Banking Group. This investment signifies the successful exit of the previous stakeholder Business Growth Fund (BGF), which injected £8.5m into the business in November 2021. BGF’s exit yielded double the original investment, totaling £17m.
The added investment from LDC will provide Kick ICT with the necessary resources to execute their M&A strategy effectively. Established in 2015, Kick ICT specializes in delivering business and financial management software solutions to various companies, predominantly SMEs. Their services extend to sectors such as social housing, construction, and education through accounting and finance software solutions. The expansion of their portfolio and the increased financial backing from LDC position Kick ICT for further growth and market penetration.
The recent developments at Kick ICT emphasize the company’s commitment to strategic expansion through acquisitions and targeted investments in technological advancements such as AI. The successful acquisition of C2 Software further bolsters their expertise in IT solutions, enhancing their capabilities in serving a diverse client base across multiple sectors. Kick ICT’s sustained growth and profitability reflect their strong positioning in the market and underline their ability to capitalize on emerging opportunities in the IT sector.
Overall, Kick ICT’s progressive approach to business growth, mergers, and acquisitions underscores their position as a leading player in the IT industry. With a focus on strategic partnerships, technological innovation, and operational efficiency, Kick ICT is poised to continue its expansion and deliver enhanced value to its clients across various sectors. The ongoing discussions regarding M&A activities suggest a proactive stance in pursuing growth opportunities and solidifying their market presence.
