Dunedin backs £43m MBO at tech firm Trustmarque

PRIVATE equity house Dunedin has backed the £43 million management buyout of a technology company that lists the NHS, Royal Bank of Scotland and Sainsbury’s among its clients.

The Edinburgh-based firm said that the acquisition of Trustmarque Solutions would enable the York-headquartered company to expand its range of services and customer base.

Dunedin partner Mark Ligertwood said: “The UK market for software and IT services is currently worth an estimated £40 billion and is expected to grow at 2 to 5 per cent to 2016.

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“Trustmarque has earned extensive market recognition for its performance to date and this is very much to the credit of its first-class management team.”

Trustmarque chief executive Scott Haddow, the former managing director for Computacenter’s operations in Scotland and Ireland, described the deal as a “milestone” for the firm, which also has offices in Edinburgh and Bracknell.

He added: “Dunedin took the time to understand our business, the journey we are undertaking and our long-term goals. They share our passion and drive and recognise the opportunities that lie ahead.”

Trustmarque was founded 25 years ago and generated £130m in revenues during the year to 31 August. The company has been acquired from LDC, the private equity arm of Lloyds Banking Group, which injected £10m into a £30m management buyout in August 2006.

LDC director Steve Harrison said that, under the group’s ownership, Trustmarque’s headcount had grown from 110 to more than 180, boosted by the purchase in 2011 of cloud computing specialist Nimbus.

Harrison said: “We wish the business all the best in its future as it embarks on its next stage of growth with Dunedin.”