LDC Exits Croud in a 105m Deal with ECI Partners
Deal News | Oct 31, 2024 | Business Cloud
LDC, a private equity arm of Lloyds Banking Group, has exited its five-year investment in the digital marketing company Croud to ECI Partners. During LDC's investment, Croud underwent substantial growth, expanding its global presence and increasing its revenue by over 360% and headcount by more than 250%. Key initiatives included the acquisition of five complementary companies and substantial investments in technology and talent, notably in its Croud Control platform. This exit offered LDC a return multiple of 2.8x. ECI Partners will now aid Croud's continued expansion and growth ambitions. Croud CEO Luke Smith emphasized the transaction's significance for their long-term growth, highlighting continued independence and future opportunities.
Sectors
- Private Equity
- Digital Marketing
Geography
- United Kingdom – Croud is based in London and has its operations mainly across the UK, with LDC being a UK private equity firm.
- United States – Croud's US business accounts for a significant portion of its revenue, indicating its notable market presence there.
- United Arab Emirates – Croud has one of its offices located in Dubai, contributing to its international footprint.
Industry
- Private Equity – The article discusses LDC, a private equity firm, exiting its investment in Croud.
- Digital Marketing – Croud operates in digital marketing, providing proprietary technology for campaign automation and execution.
Financials
- 105 million – Total deal value for ECI’s acquisition of Croud from LDC.
- 30 million – Initial minority investment by LDC in Croud in 2019.
- 2.8x – Money multiple return for LDC from the sale of its stake in Croud.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| LDC | Selling Company | Company | A private equity firm part of Lloyds Banking Group. |
| Croud | Target Company | Company | A full-service digital marketing company leveraging proprietary technology. |
| ECI Partners | Bidding Company | Company | A private equity firm acquiring LDC's stake in Croud. |
| Luke Smith | Co-Founder & CEO of Croud | Person | Co-founded Croud and leads as CEO. |
| Ben Knight | Co-Founder of Croud | Person | Co-founded Croud alongside Luke Smith. |
| David Andrews | Partner at LDC | Person | Led the transaction for LDC. |