Sector Technology, media and telecoms
Locations UK, US, Canada, China, Hong Kong, Singapore
Exit date June 2014
Investment status Realised
Return 16.2x; Floated on LSE

FDM Group plc

The company

FDM Group plc is an international IT services company which operates a unique business model whereby IT-literate graduates are provided with intensive training in a number of disciplines through the FDM Academy Programme. Once trained the graduates gain a two-year employment contract with FDM and go on to provide in-house IT support across a range of disciplines to over 130 blue-chip clients including the BBC, UBS, Virgin and British Airways. FDM has firmly established itself as the UK’s leading IT graduate employer and one of the top 25 fastest growing companies in Europe.

Growth strategy

FDM recognised they had a business model that was internationally applicable, and wanted to expand beyond their European heartland. Delisting from AIM allowed them to take some longer term investment decisions and the business is now active in North America and Asia.

The Inflexion difference

From the outset, Inflexion formed a strong relationship with Rod Flavell, the entrepreneur who founded FDM. Our trust in Rod and the wider team enabled us to back what proved to be a complex public-to-private deal with a common vision and mutual understanding.

Throughout our dynamic partnership with management, FDM consistently outperformed in its profit growth. This exceptional growth has been achieved principally through a significant expansion of the company’s operations and geographic reach, opening operations in the US, Canada, China, Hong Kong and Singapore. This expansion drove a significant increase in the number of consultants from 338 operating in the UK and Europe at the time of investment, to in excess of 1000 internationally.

Inflexion has realised a return of 16x on the IPO of FDM Group. The Company will join the main market of London Stock Exchange, with a market capitalisation of £308.5m at the time of exit in 2014.

Rod Flavell, FDM’s CEO said “We are delighted to be joining the main market on the London Stock Exchange. With Inflexion’s support, we have expanded both our geographic reach and breadth of service offering significantly over recent years and this strengthened operational platform leaves FDM extremely well-placed to capitalise on the strong growth prospects in the global IT market.”

The sale process was led by Richard Swann and Gareth Healy.