Private equity firm Sovereign Capital has acquired contractor services specialist SJD Accountancy and online accounting practice Nixon Williams in a deal worth more than £100m.
The new deal will see the combined group become a top 30 UK accountancy firm, bringing more consolidation to the mid-tier market. Sovereign Capital says the contractor services market is highly fragmented and it plans to expand with further acquisitions in the months ahead.
The two businesses will retain their brands and operate separately within the PE firm's portfolio, receiving the investment and support to further develop their offering.
Together the group's combined fee income will be £25m per annum, providing services to 18,000 limited company contractor clients across the UK.
SJD founder Simon Dolan has stepped down following the deal and will be involved in a consulting capacity for a period.
Jeremy Newman, current chair of the Audit Commission and former head of BDO International, joins as group chairman; while Kevin Budge, who previously completed the PE exit of Avelo FS to Iress, will become CFO.
Claire Johnson, the managing director of SJD, becomes group operations director, and former internet company executive Simon Curry has been named group chief executive.
Curry, the former chief executive of Powwownow and Plusnet, said: “Both SJD and Nixon Williams are excellent businesses, fully focused on providing clients with a highly efficient service; both businesses receive a significant number of referrals from existing clients and enjoy long term client relationships.
“The economic landscape has shown continued growth in the contractor market and we look forward to building upon the pace of growth these businesses have achieved,” he added.
SJD Accountancy was founded in 1992 by entrepreneur Simon Dolan, and has since become the largest accountancy provider to the contractor market.
Nixon Williams was established in 1995 by Alan Williams and Andy Nixon, and has also experienced strong growth in the IT contractor market.
Sovereign Capital is a UK-based private equity 'Buy & Build' specialist with specific expertise in the service based sectors of business support services, healthcare, education and training.
About Robert Lovell
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