Digital technology services provider, Incremental, has acquired Glasgow based Redspire in a deal that accelerates Incremental’s position in the financial services market and makes the organisation one of the largest Microsoft Dynamics partners in the UK.
The combined group now has run rate revenues exceeding £20m and 180 employees across the UK. Redspire will continue to operate as an autonomous business within Incremental.
Redspire provides Microsoft Dynamics 365 CRM and Power Platform solutions to financial service providers and works with customers including Virgin Money and Beazley Insurance.
Simon Rowan, Partner at Dunedin, commented: “The acquisition of Redspire is an important milestone in Incremental’s buy and build strategy. The company is committed to offering its customers the highest quality range of services, and this customer service philosophy very much underpins the acquisition. The strategies of both companies are closely aligned, which will allow Incremental to continue to increase its scale and market reach, particularly in the financial services sector.”
Incremental Group helps public sector, not for profit and commercial organisations digitally transform with Microsoft technologies. It is in the top 1% of Microsoft Dynamics partners worldwide, and also provides Microsoft Power Platform, Modern Workplace, Azure and data services. Its customer base includes Admiral, Little Greene Paint & Paper and the NHS. With a growing customer base in public sector, not for profit, manufacturing and professional services, Incremental is also increasingly seeing success in the financial services market, which this acquisition further accelerates.
Incremental Group was launched in November 2016 by a group of Scottish technology industry executives. Dunedin invested in Incremental in December 2018.
Discussing the acquisition, Neil Logan, CEO of Incremental said: “I am delighted that despite the pandemic our market continues to grow, the pace of change is accelerating in businesses and the scale of transformation projects we are seeing is increasing. Microsoft and our customers are increasingly looking to work with larger but agile partners who can better deliver for and support them. The acquisition of Redspire strengthens our ability to do this.”
Incremental’s FY20 revenue was £13.2m, with a normalised pro forma EBITDA of £0.9m. Business performance has been strong throughout the pandemic resulting in further growth and improved profitability through the current financial year. Comparing H1 FY21 (April – September 2020) with H1 FY20 (April – September 2019), revenue was up more than 10%, gross margin up 5 points and EBITDA up by more than £1m returning a double-digit EBITDA margin.
The group is targeting £60 million revenue by 2023, a workforce of more than 500 and plans further acquisitions over the next couple of years. Neil Logan added: “While we are focused on continuing to drive strong organic growth, we are working to identify further value accretive acquisitions as part of our buy and build strategy.”
Billy Lyle, Managing Director at Redspire said: “We’re excited to continue on our growth journey, delivering real value for our customers now and in the future. Financial Services is showing real resilience and determination, with transformation key to building adaptability and innovation. Joining with Incremental provides Redspire with access to additional resources and expertise. Redspire is extremely well placed for an exciting future, it’s a great opportunity for everyone involved."