Croud Exits to ECI Partners Following Growth
Deal News | Oct 31, 2024 | LDC
LDC, the private equity firm, has exited its investment in the digital marketing agency Croud, selling it to ECI Partners. The sale resulted in a money multiple return of 2.8x for LDC. Croud was founded by Luke Smith and Ben Knight in 2011, and under their leadership, it has developed a reputation for innovation and being a great place to work, achieving significant growth both in the UK and internationally. This transaction represents a major milestone in Croud's expansion plans, allowing it to continue its independence while exploring new opportunities. LDC and Croud engaged GP Bullhound for corporate finance, Strategy& for commercial due diligence, A&M for financial due diligence, and DLA Piper for legal advice in this transaction. The deal, which was exchanged in October, is slated for completion by the following month.
Sectors
- Private Equity
- Digital Marketing
Geography
- United Kingdom – Croud's significant growth and operations have been notably prominent in the UK market, and it is also where LDC is headquartered.
Industry
- Private Equity – The industry involving investments in private companies, often involving complex transactions like buyouts and exits, akin to LDC's sale of Croud.
- Digital Marketing – A sector focused on the use of digital channels to promote or market products and services, relevant due to Croud's expertise and business operations.
Financials
- 2.8x – The money multiple return that LDC achieved from its exit from Croud.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| LDC | Selling Company | Company | Private equity firm that invested in Croud and has now exited its stake. |
| Croud | Target Company | Company | Digital marketing agency known for its innovative approach and workplace culture. |
| ECI Partners | Bidding Company | Company | Private equity firm acquiring Croud from LDC, looking to support its next growth phase. |
| Luke Smith | Co-Founder | Person | Co-founder of Croud, instrumental in its growth and strategic direction. |
| Ben Knight | Co-Founder | Person | Co-founder of Croud, key to its development and success. |
| David Andrews | Partner at LDC | Person | Led the transaction from LDC's side, emphasizing the strategic growth achieved. |
| GP Bullhound | Corporate Finance Advisor | Company | Advised LDC and Croud on the financial aspects of the transaction. |
| Strategy& | Commercial Due Diligence Advisor | Company | Performed commercial due diligence for the transaction. |
| A&M | Financial Due Diligence Advisor | Company | Responsible for financial due diligence in the transaction. |
| DLA Piper | Legal Advisor | Company | Provided legal advice for the transaction. |