Inflexion exits FDM with £308m flotation

As published by Education Investor, 17th June 2014.

IT and training firm FDM Group has listed on the London Stock Exchange with a market capitalisation of £308.5 million.

The business, formerly owned by Inflexion Private Equity, offers graduate training for corporates, as well as IT consultancy services and retraining programmes for returning soldiers.

Inflexion bought a majority stake in 2010 for £28.4 million, delisting the business from Aim in the process.

Since then profits have increased fivefold and FDM has opened operations in the US, Canada, China, Hong Kong and Singapore. Last year sales grew by 2.1% to £105.6 million, while operating profit climbed by 25.6% to £14.7 million.

Inflexion said it had sold its entire stake for £234.7 million, representing a return of 16.2 times its initial investment. FDM’s management team will retain a 20% stake in the business.

Simon Turner, managing partner at Inflexion, said: “We are exceptionally proud of the success of FDM. Together we have overseen rapid international expansion, huge growth in employee numbers and a five-fold increase in profits.

“Our aim was to place 75% of our holding but due to exceptional investor demand we have realised our entire stake,” he added.

Updated 17 June, 2014