Terms of the transaction were not disclosed, and the transaction is subject to closing conditions. The investment will be used to support Focus Group’s growth in the UK.
Focus Group was founded in 2003 by Ralph Gilbert and Chris Goodman in Brighton and Hove, UK. The company provides digital workplace solutions – including communications and software solutions, connectivity and IT services – to around 30,000 SME customers.
Chris Goodman, co-founder of Focus Group, said, “Having enjoyed four fantastic years with our previous investor Bowmark, we are thrilled to now be partnering with Hg.
“Not only do they recognise the commercial opportunity that lies ahead and the capability of the team, but they also understand that it is the culture that we’ve built at Focus Group over the past 20 years that is the foundation of our success.
“This is the beginning of a new and exciting chapter for the business and our incredible team.”
Ralph Gilbert, co-founder of Focus Group, added, “Hg have demonstrated their ability to create value using their extensive experience in backing companies who sell business services to SMEs.
“They show a deep understanding of how to maximise and accelerate growth using data and AI; this has resonated with us as we already have sector leading data on which we are excited to capitalise.
“Alongside this we found that we have well-aligned views of the future of the ICT industry, both in terms of product and future M&A opportunities. We are very excited as to what the future holds in partnership with Hg.”
Hg’s investment will support Focus Group's organic growth plan, M&A ambitions and product development initiatives. The investor has made more than a dozen investments in SME tech services over two decades and will provide expertise to support a Focus Group’s future growth.
Conor Stewart, principal at Hg, commented, “We are delighted to partner with Chris, Ralph and the rest of the Focus Group management for the next stage of Focus’s journey. We’ve been impressed by the teams’ vision, commitment and ambition for future growth.”
Focus Group and Bowmark were advised by Houlihan Lokey, Osborne Clarke and PwC. Hg was advised by Arma Partners, Linklaters and EY.