Kick ICT says it’s in ‘active’ M&A discussions as profits more than double – UKTN

One of the UK’s biggest IT suppliers has said it’s in “active” M&A discussions after posting a more than doubling of profits.

Bellshill-based Kick ICT, which offers IT solutions and network infrastructure services, recently acquired Microsoft Dynamics specialist C2 Software for an undisclosed fee, representing the firm’s ninth acquisition in eight years.

“M&A continues to be a core element of the group’s strategy,” Kick ICT said.

“The group remains active in the M&A market with a number of discussions currently ongoing.”

Kick ICT posted a more than doubling of profits to £1.4m for the year to end September, while turnover rose 11% to £28.7m.

The firm increased its headcount to 175, adding that it had also “leveraged Al internally to deliver significant productivity gains across the business.”

During the year, Kick ICT secured a “significant investment” from LDC, a private equity investor that is part of Lloyds Banking Group.

The new investment from LDC marks the successful exit from previous Kick ICT backer Business Growth Fund (BGF), which invested £8.5m into the company in November 2021.

BGF said the exit delivered a return of double its original investment, or £17m.

Kick ICT said the investment would provide the group with “increased firepower to execute our M&A strategy.”

Founded in 2015, Kick ICT provides companies with business and financial management software. The firm primarily works with SMEs. However, it also provides accounting and finance software across the social housing, construction and education markets.

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