Inflexion takes FDM private

Mid-market private equity firm Inflexion has acquired AIM-listed IT services company FDM Group for an enterprise value of £28.4 million.

Long-term debt finance for the deal was provided by HSBC, while Investec Fund Finance supplied bridging debt.

John Hartz, managing partner at Inflexion, led the deal with colleagues Richard Swann and Gareth Healy. He comments, ‘We see great opportunities for [FDM], which even during the recession has traded well and expanded margins.’ Hartz and Swann are joining the board of Astra 5.0, the vehicle set up to acquire FDM, as non-executive directors.

The company trains graduates in various IT disciplines, then hires them out to large organisations looking for entry-level staff.

The deal is the second private equity acquisition of an AIM-quoted company in as many weeks, after insurance specialist LitComp was purchased by Scottish growth investor Maven Capital Partners