Inflexion were an ambitious and proactive investor and fully supported the management team in developing the business so effectively over our five-year partnership.
Richard Vercesi,
CEO, Red Commerce
Red Commerce
IT resourcing specialist Red Commerce partnered with Inflexion in 2005 and over the next five years together opened four new international offices and grew profits 125%. The business was sold in a £44m deal to financial buyer Dunedin in 2011.
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Sector
Business services
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Headquarters
London, UK
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Fund
Buyout
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Investment date
December 2005 - July 2011
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Status
Realised
The company
Red is a global IT resourcing specialist supplying SAP consultants to multinational corporations on mid- and long-term consulting contracts and permanent placements. Red saw demand for its specialised consultants double under Inflexion’s ownership. The Red Commerce team was multinational and multilingual and truly understood different cultures, which gave it a competitive edge in the global SAP market.
The Inflexion investment
Inflexion led the £15m management buyout of the business in December 2005. We invested £6.6m through a mixture of loan notes and shares in return for a substantial management stake. The management team and vendors also invested.
The Inflexion difference
We helped to set up offices in Munich, Zurich, Sao Paulo and Stockholm, and developed the strategic market entry and operational plan to enter the US. Together we invested heavily in Red’s business development function and corporate infrastructure as well as developing a unique consultancy service line called RedSolutions.
Under our ownership, Red’s profits grew by 125% (CAGR: 18%) and staff numbers increased by 85%. At exit the company had the depth of skills and capabilities to realise its further growth ambitions.
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