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UK - MBO of Red Commerce backed by venture capital

05 July 2011

Venture capital firm Dunedin has acquired Red Commerce, a global supplier of SAP (Systems, Applications and Products in data processing) experts to international corporations and consultancies, in a 44 million Pounds management buyout.
Dunedin has bought the company from the original founder and Inflexion, the private equity house that led a 15 million Pounds management buyout in 2005.
David Williams, Director of Dunedin who will join the board of Red Commerce commented "the UK is a world leader in recruitment. Red Commerce occupies an attractive position within the global ERP (Enterprise Resource Planning) software systems market with a high quality, diversified and loyal customer base. The business is exceedingly well placed to benefit from this growing international market."
Red Commerce, which was founded in 2000, now has a global footprint with access to over 200,000 SAP experts in 80 countries, and offices in the UK, Germany, France, Scandinavia, Switzerland and Brazil. Clients include Bosch, Johnson & Johnson and Novartis. Included within the Sunday Times Fast Track 100 for three consecutive years, Red Commerce's most recent reported profits were ahead of budget at 5.5 million Pounds EBITDA.
Named one of the best Small Companies to Work For in 2010 and 2011 by the Sunday Times Best 100, Red Commerce prides itself on outstanding customer service with an ability to access the best and most appropriate consultants to cutting edge SAP implementations, locally and globally.
Richard Vercesi, CEO of Red Commerce, said "A number of elements made Dunedin stand out in the tight deal process including a strong partnership approach, deliverability with their DebtBridging solution, a proven appetite and the expertise to help us to achieve our growth ambitions."
"Business growth will come by further enhancing relationships and services to our existing client base, new customer acquisitions, continued focus on service differentiation, strengthening our geographic footprint in existing markets by opening additional regional offices, expanding our international office network in line with SAP's growth plans and the continued expansion of RedSolution, our SAP Advisory, Implementation and Enablement service."
SAP is a provider of ERP software, which helps companies of all sizes and industries operate efficiently, including many of the world's largest organisations. The Company is notable for the number of successful sportspeople in its senior management ranks including a gold-winning Commonwealth fencer, a UK National Cup winning basketball player, an Italian University Championship rower, and an ex-England under-21 rugby player while the CEO, Richard Vercesi was himself a semi-professsional footballer for 15 years.


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