- Senior management team increases its shareholding in 120-strong digital agency
- Funding package from HSBC and Frontier Development Capital values the business at £30 million
Harrogate, North Yorkshire. June 12th, 2016 – Harrogate-headquartered digital agency Ingenuity Digital Holdings Limited (IDHL) has completed a management buyout (MBO) of the business supported by a funding package from HSBC and Frontier Development Capital (FDC).
The investments from HSBC and FDC follow a period of consistent growth for IDHL and a record financial performance in 2016, with revenues exceeding £10.5 million. The MBO, which values the business at £30 million, has provided an excellent return for exiting investors and enables the senior management team to become majority shareholders.
The total value of the investment from HSBC and FDC that enabled the MBO has been kept confidential.
Founded in 2000, IDHL’s 17-year track record has seen it become one of the UK’s largest full-service digital agencies and the largest independent in the North, home to the Ingenuity Digital, WMG and NetConstruct brands. The business’ 120 strong team of experts deliver a range of digital services to clients including TNT, Coast and Radley, and have achieved numerous prestigious awards and recognition in the industry.
HSBC provided funding to facilitate the deal in partnership with FDC; a new funder focused on supporting regional business growth across the UK – this is the first investment from its newly launched National Mezzanine Fund.
Dennis Engel, Chief Executive of IDHL, said:
“This investment will help continue our ambitious growth drive and support our clients with innovative new products and services. It has been a transformative 12 months for IDHL with management appointments, new headquarters and a strengthening of our expert team. The MBO will help us keep up this momentum into the future. I’m delighted for the exiting investors and the employees who’ve benefitted from their share options, and I’m also pleased with the increased control and shareholding within the Business.”
Adam Kelly, HSBC’s Area Director for North Yorkshire & Humber, said:
“We are delighted to be supporting IDHL and its new owners, as it begins a new chapter in its history. The management team has an ambitious strategy to target new markets across the UK and increase its offering to customers. We look forward to seeing the business and its new management team continue to flourish.”
Ondrej Okeke, Regional Investment Director at Frontier Development Capital (FDC), said:
“This company is a perfect example of the type of business we are focused on supporting – a regional business with ambitious growth plans and a very credible management team.”
IDHL’s success to date is a result of its highly client-focused approach, underpinned by robust proprietary systems – with such a strong base and energy; we are looking forward to working with the team and seeing just how much they grow the business in the coming years.”
About the IDHL Group
The IDHL Group comprises WMG, Ingenuity Digital (ID) and NetConstruct, and is now one of the fastest growing digital marketing agencies in the UK. With more than 120 experts, an outstanding reputation and an enviable market-leading position developed over 16 years; the Group continues to go from strength to strength.
For more information, please contact
+44 (0) 1423 722058
Central House, Otley Road, Harrogate, HG3 1UF