Telefónica Tech snaps up Scottish IT consultancy Incremental
Scotland origin professional services firm Incremental has been acquired by Telefónica Tech.
Officially launched in 2016, Incremental is an IT services and consulting firm with 350 employees, and offices across Europe and Asia.
The firm serves clients including the UK Pensions Regulator, National Highways, Imperial War Museums, Admiral Insurance, Virgin Money, Harbour Energy, Heathrow Airport and ASOS from UK locales in Glasgow, Aberdeen, Manchester, Surrey and London, as well as international offices in Sofia (Bulgaria) and Pune (India).
As the Glasgow headquartered company looks to boost ‘ambitious’ scale-up plans, it has brought in new backing from Telefónica Tech. The transaction will see Telefónica Tech strengthen its capabilities and presence in the UK and Ireland, where it operates under the Telefónica Tech UK&I brand – while becoming part of Telefónica Tech enables Incremental to further obtain global opportunities for its people and customers.
Neil Logan, Chief Executive Officer at Incremental Group, commented, “I am immensely proud of what Incremental has achieved since our inception a little over five years ago. As we looked ahead to the next stage of our development, it was important that we secured Incremental the right support for the long term.”
Telefónica Tech is a company which focuses on digital transformation. The company has a wide range of services and integrated technological solutions for cyber security, cloud, big data, and blockchain – something complementary to Incremental, as a Microsoft Inner Circle member, and one of the fastest-growing Dynamics and data partners in the UK.
The deal will go through for a value of up to £175 million – including “potential” contingent payments linked to its future performance.
The dealmakers
Shareholders of Incremental were advised on the sale to Telefónica Tech by a team from professional services firm BDO. According to Logan, BDO’s advisers “understand the dynamics of the M&A market, the nuances of our sector and how to get a deal over the line”, but they also built “a positive working relationship” with the firm over the past five years.
Rory McPherson, M&A Partner at BDO, meanwhile added, “This transaction is a culmination of the hard work and commitment of the Incremental team and its market-leading offer.”
