Edinburgh software testing firm has £50m turnover goal in sights after eight-figure capital injection

“Their support and expertise will help us to further develop our service offerings and identify acquisition opportunities” – Dave Kelly, CEO

An Edinburgh software testing firm whose clients include funds giant Abrdn, Virgin Money and the Home Office has secured eight-figure funding as it targets £50 million-plus in revenues.

The cash injection for capital-headquartered 2i has been provided by London-based private equity firm Rockpool Investments. The software testing specialist already turns over some £20m annually and is targeting turnover in excess of £50m in the coming years. The firm helps organisations across the private and public sectors to safely roll out major IT programmes. With more than 200 staff across the UK, it has enjoyed rapid organic growth in recent years.

Dave Kelly, who moved from managing director to chief executive of 2i in 2022, said he was keen to explore acquisition opportunities with the injection of capital and experience that Rockpool will provide.

Dave Kelly is the chief executive of Edinburgh-headquartered software testing firm 2i. Picture: Ian Georgeson Photography

“Their support and expertise will help us to further develop our service offerings and identify acquisition opportunities to support our aim of becoming the premier quality engineering company in the UK,” he added.

The firm is headquartered on George Street, Edinburgh, with further offices in Glasgow and London. Rockpool’s investment was led by Guy Nieuwenhuys and Will Beckett.

Nieuwenhuys, investment director, said “We are delighted to be partnering with Dave Kelly and the 2i team as they continue their strong organic growth and embark on a buy and build journey. We have been impressed by their proactive investment in talented people and automation products.

“The business is highly innovative and takes a strategic partner approach to working with its clients. Increased digital change poses a huge risk to organisations as system failures can lead to significant financial and reputational issues for companies and their senior executives - 2i is well-placed to support, through its focus on high-quality delivery and client service.”

Rockpool was advised by Stephenson Harwood (legal), Saffery (financial and tax), Palladium Digital (technology), Continuum (organisational) and Claritas (tax structuring), while 2i was advised by Moore Kingston Smith (corporate finance and tax) and Bird & Bird (legal). Rockpool provides funding of between £5m to £15m to “profitable UK-based private companies” and has invested some £675m since inception.

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