Sector Business services
Location London, UK
Exit date July 2011
Investment status Realised
Exit details Secondary Buyout to Dunedin, 4.4 X ROI, 34% IRR

Red Commerce

The company

Red was a pan-European IT resourcing specialist supplying SAP consultants to multinational corporations on mid and long term consulting contracts and permanent placements. Red operated in a high-growth market and saw demand for its specialised consultants double under Inflexion’s ownership.  The Red Commerce team was multinational and multilingual and truly understood different cultures, which gave it a competitive edge in the global SAP market.

Growth strategy

Red was a high growth business, run by an ambitious team who were looking for an investor to help and support investment in their corporate infrastructure to create a platform to sustain further expansion. They also wanted to capitalise on the significant international opportunities they had identified and wanted to continue to develop their services.

The Inflexion difference

We worked in partnership with the Red management team to accelerate the company’s overseas expansion. We helped to set up offices in Munich, Zurich, Sao Paulo and Stockholm, and developed the strategic market entry and operational plan for entry into the US. Together we invested heavily in Red’s business development function and corporate infrastructure as well as developing a unique consultancy service line: RedSolutions.

Under our ownership, Red’s profits grew by 113% (CAGR: 16.3%) and staff numbers increased by 40%. At exit the company had the depth of skills and capabilities to realise its further growth ambitions.