Datapipe acquires UK cloud company Adapt

US cloud services company Datapipe has bought a UK cloud company, Adapt, from private equity investor Lyceum Capital. The deal was supported by Abry Partners, the lead investor in Datapipe.

Lyceum bought a majority stake in Adapt in 2011 for £30 million, but neither it nor Datapipe have disclosed the price at which Adapt has been sold.

Datapipe CEO Robb Allen said: “Our similar approach to guiding clients on their cloud journey makes the acquisition a natural fit for us and will increase our scale and service capabilities in the United Kingdom, and the broader European market.”

According to Lyceum, since the 2011 acquisition, Adapt has achieved double digit growth and 25% EBITDA margin. It transformed from being a reseller of data centre colocation and connectivity into a high-growth managed hosting provider and cloud integrator for business critical applications.

Lyceum partner Simon Hitchcock said: “Since the acquisition, we have invested heavily into developing the business’s capability and growing it significantly by putting Lyceum’s buy and build model into action. Our deep understanding of the IT managed services market coupled with the management team’s expertise, have helped Adapt to become a market leader in its niche.”

Adapt’s customers include the Cabinet Office, the Greencore Group food company, flower seller Interflora and furniture company Steinhoff. It bought two other businesses, eLinia in April 2012 and Sleek in June 2013.

Adapt CEO Stewart Smythe said: “Consolidating just within the UK by rolling up similar businesses is short-sighted, boring and messy. We are seeing emerging customer requirements for a tactical and strategic presence overseas so it makes sense for us to advance the UK’s capability in a global market. Datapipe is the perfect business to acquire Adapt – this agreement is about mutually enhancing regional and global capability.”

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