Dunedin Bridges Trustmarque Management’s Buyout Hopes

Trustmarque’s management has been given the go-ahead for a buyout of their York-based services and solutions business. The deal has been backed by Dunedin, the UK mid-market buyout house, to the tune of £43 million.

The business was acquired from Lloyds Development Capital (LDC) using Dunedin’s DebtBridge application to evaluate the feasibility of underwriting the debt. In 2012, Trustmarque recorded revenues of over £130 million.

Bid for success

Trustmarque has been operating for over 25 years providing products, from companies including Microsoft, VMware, and McAfee, and professional services both to public and private sector organisations across the UK. It was the first Microsoft partner to achieve Gold licensing status and is a leading supplier of software and consulting services to the government.

The business employs a total of 180 people at its sites in York, Bracknell and Edinburgh. It claims to have over 1,200 customers including RBS, Lloyds Banking Group, Sainsbury’s and Capita. In the public sector, clients include the NHS, Ministry of Defence, Ministry of Justice, HMRC, local authorities, and NHS trusts throughout the UK.

Under LDC’s ownership, the company has transformed from an IT reseller into a value-added provider of IT services. The acquisition of Nimbus Technology Systems in 2011 enabled Trustmarque to improve its cloud-based services.

Scott Haddow, CEO of Trustmarque, commented, “Dunedin’s investment is a key milestone in the evolution of the business. They share our passion and drive and recognise the opportunities that lie ahead. Dunedin’s DebtBridgeproduct meant that the deal could get done quickly, while ensuring certainty of delivery to everyone involved.”

In 2007, Dunedin responded to the government’s call for investment in SMEs by providing bridging funds. The financial relief will enable Trustmarque’s management to expand its services offerings and increase its customer base, the company said.