EDM secures £100 million funding to deliver international digital
transformation, acquisitions and organic growth
15th December 2015
- Transaction follows successful track record of eight acquisitions in the UK and US over past three years
- EDM Group poised for significant growth as information management challenges for corporates, financial institutions and public sector bodies intensify
- EDM’s earnings are forecast to grow in 2016/ 2017 with record demand from existing and new clients for digital transformation services
- Deal reinforces EDM’s position as a fast-growth UK tech success story1 with global ambitions
EDM Group (EDM), the international information management specialist, has secured £100 million in new funding to power continued product development, further acquisitions and organic growth. The funding has been provided by funds managed by BlueBay Asset Management and was arranged in partnership with Lloyds Bank.
LDC-backed EDM has seen its annual turnover grow from £23 million in 2011/ 2012 to £70 million in 2014/ 2015. Earnings are forecast to grow further in 2016/ 2017 with record demand from existing and new clients for EDM’s digital transformation and compliance solutions.
The £100 million in new funding follows a successful track record of eight acquisitions in the UK and US over the past three years, with EDM reviewing further acquisitions in core markets: North America, the UK and Europe. The past three years has seen EDM increase its global footprint with the launch of EDM in North America as well as the acquisition of xit2, the property data network, positioning EDM Group as an innovative player in the mortgage services market.
EDM has proven expertise in enabling public and private sector organisations to transform their information management processes, delivering significant efficiencies and improved user experiences across mobile and online platforms, while ensuring full regulatory compliance and data security. Increased regulation across its client segments is expected to escalate as regulatory authorities focus on information quality, transparency, validity and accessibility. The imminent introduction of the General Data Protection Regulations (GDPR), which will harmonise data protection legislations across Europe and introduce fines for data breaches of up to 5% of annual global turnover or €100 million (£73 million), is expected to catalyse further demand and EDM is well placed to address these challenges.
EDM’s client list includes HMRC, Mercedes Benz, Legal & General, Bupa, Santander, Nationwide Building Society, Avis, Barclays and a number of NHS trusts. Its deep sector expertise includes financial services, automotive, insurance, government, health and mortgage services. In the US, EDM continues to gain momentum in key vertical markets – particularly the US insurance sector in which EDM is currently servicing seven of the top 10 firms.
Sam Ferguson, Group CEO of EDM Group, commented: “EDM is a leader in the transformation to digital and mobile information management. Our proprietary platforms enable full compliance for complex organisations and a greatly enhanced customer experience. This funding is a huge vote of confidence in our ability to continue to innovate and drive growth internationally.”
Alexander Clark, Investment Director at LDC South, said: “EDM has cemented its position as a differentiated market-leading information management firm in a highly complex and competitive market. The series of strategic acquisitions which it has undertaken in recent years has strengthened its core capabilities and increased its market share substantially. This latest injection of capital will enable us to work with its leadership team to execute further strategic opportunities to extend its international reach, expand its product offering as part of its long-term growth plans and continue to support future acquisitions”.
Ben Harrild, Head of UK, Private Debt, BlueBay Asset Management, said: “EDM has an established position in a market with strong growth fundamentals and we are pleased to have been given the opportunity to provide support at an exciting time in the company’s development. We believe EDM’s track record and blue-chip client base combined with a supportive sponsor in the form of LDC and a strong management team positions the company well for this next phase of growth.”
Adrian Peckham, Director, Acquisition Finance team at Lloyds Bank Commercial Banking, added: “We are delighted to continue to support EDM as the group enters into its next phase of growth. In recent years EDM has grown substantially as a business, expanding into the US market and developing a number of exciting digital products. With the continued support of LDC and a strong management team we believe EDM is well positioned to make further gains in a competitive market and look forward to supporting the group during this journey.”
Innovation and new product development have been key to EDM’s success and growth. In 2015, the group’s EDM Mortgage Support Services (EDM MSS) division rolled out EDM Prism, a real-time risk management tool, and EDM Commercial Valuation Exchange (CVEX), a unique product which automates the process of allowing mortgage lenders to distribute work to and receive work from qualified surveyors. Leading edge products such as these as well as others like EDM’s Digital Payout – which significantly enhances the car financing process – build on EDM’s original service, Digital Mailroom, which remains a significant engine of growth: EDM currently scans 700 million images per annum and delivers 250 million communication items to clients per annum. Since 2011, revenues from EDM’s Digital Mailroom have grown 260%.
NOTES TO EDITORS
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About EDM Group: Headquartered in London, EDM Group employs over 1,400 people across the UK and US. For the financial year 2014/2015, the firm reported an annual turnover of £70 million. In September 2015, EDM Group was ranked 43rd in the annual Sunday Times Hiscox Tech Track 100 league table, up from 57th in 2014 – a reflection of the fast-growth success of the firm and its position as a leading, global information management and digital transformation specialist. In June 2016 EDM Group was ranked number 1 in the annual Sunday Times HSBC International Track 200.
EDM Group combines best-practice consulting and technical experience to develop bespoke outsourced solutions for a range of clients across the private and public sectors. The success of the firm has been built on its powerful Digital Mailroom document scanning and storage capability, which continues to be a core, in-demand product offering. EDM Group’s growing client base spans sectors including financial services, automotive, professional services, private healthcare, and the public sector (central and local government, and NHS). Specific clients include HMRC, Legal & General, Bupa, Avis Budget EMEA Ltd, Nationwide Building Society, Barclays, Santander, Companies House, Lloyds Banking Group, Grant Thornton and healthcare providers including NHS Trusts and BMI hospitals.
EDM Group is accredited to ISO standards for Information Management Systems (ISO27001), Environmental Management (ISO14001) and Quality Management (ISO9001).
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