Dunedin investment to fuel growth of IT services firm

Trustmarque, which helps organisations license, deploy and manage technology services, has been acquired from LDC.

The business recorded revenues of more than £130m for the year ended August 31 2012.

Dunedin’s investment will enable Trustmarque to expand its range of services and grow its customer base.

The business employs 180 people at three sites in York (HQ), Bracknell and Edinburgh.

It serves more than 1,200 clients including RBS, Lloyds Banking Group, Sainsbury’s and Capita. Public sector clients include the NHS, Ministry of Defence, Ministry of Justice, HMRC, local authorities and NHS trusts across England, Scotland and Wales.

Mark Ligertwood, a partner at Dunedin, said: “We are pleased to be investing in Trustmarque. The UK’s IT market is second only in size to that of the US and Japan, and the growth opportunities are significant, as private and public organisations invest in the latest products to increase business efficiency.”

Scott Haddow, the chief executive of Trustmarque, said: “Dunedin’s investment is a key milestone in the evolution of the business. Trustmarque has developed significantly over the last four years.

“Our ambition now is to cement our position as an independent end-to-end technology services provider, and the trusted adviser of choice for blue chip and large Government enterprises.”

Steve Harrison, a Leeds-based director at LDC, said: “Trustmarque has developed into a market leader in value-added technology services.

“The transformation of the business is testament to the close working relationship that we developed with Scott Haddow and his team, and hard work behind the scenes to create a diversified business of significant scale in a highly fragmented market. We wish the business all the best in the future as it embarks on its next stage of growth with Dunedin.”

This investment follows three exits and the £34.5m management buyout of Premier Hytemp; all of which have been completed by Dunedin over the last twelve months. Dunedin has also completed 17 portfolio acquisitions since 2011.

Also involved in leading the deal for Dunedin were Dougal Bennett (partner), Jon Ma (investment director) and Jamie Moodie (senior associate). LDC and management were advised by Dave Irwin and Andy Miller from Sentio Partners, and legal advice was provided to the shareholders by Jonathan Jones, Jayne Aarons and Peter Morley of Leeds-based Squire Sanders. Other advisers included BDO, Korn Ferry Whitehead Mann, Pinsent Masons, KPMG, Armstrong, OC&C, Intuitus and Waypoint Change.