It was only a couple of months after backing what turned out to be its final MBO in September last year, of IT infrastructure services firm 365iT (now 365 ITMS), that private equity player, LMS Capital, decided to hang up its gloves. LMS is the AIM-listed spin-out from VC/PE London Merchant Securities, and is chaired by Richard Christou, ex-senior executive VP (and now Corporate Executive Adviser for Global Affairs) at Fujitsu.
LMS had dabbled in a number of ‘interesting’ companies in our space, including supply chain management SaaS firm, Wesupply (see Wesupply delivers to Sainsbury’s – and a whole lot more) and public sector network services provider, Updata (see Updata in Tech Track 100), both very much of the ‘Little British Battler’ mould.
Updata had a relatively muted year in 2011, with revenues remaining flat and margins squeezed. However, we have flagged Updata (see Updata in Tech Track 100) as worthy of interest as it is one of the highest profile smaller suppliers in the nascent PSN (Public Services Network) market – see our latest report The Public Services Network: foundation for change in public sector IT?.
Wesupply had more to celebrate, with 7% top-line growth and its first full-year operating profit. 356iT is performing ‘in line’.
All these companies will be looking for new homes over the next couple of years or so. I would be surprised if they were left out in the cold when LMS Capital finally switches off the lights and locks the door.