Edinburgh based software testing firm, 2i, has secured eight-figure private equity funding which will enable the company to grow as it targets achieving turnover in excess of £50million in the coming years.
The company has already achieved turnover of more than £20million, providing testing and quality assurance support to clients including the Home Office, Virgin Money, Abrdn and The Scottish Government’s Social Security Directorate.
The funding was provided by London-based Private Equity firm Rockpool Investments, which is renowned for supporting profitable high-growth businesses with ambitious growth plans.
2i is already a leader in the field, helping organisations across the private and public sector to safely roll out major IT programmes. With more than 200 staff across the UK it has enjoyed rapid organic growth in recent years.
Dave Kelly, who moved from Managing Director to CEO in 2022 is keen to explore acquisition opportunities with the injection of capital and experience that Rockpool will provide. He is optimistic for the next phase of growth for 2i.
He said: “We are absolutely delighted with this investment from Rockpool who we believe are the perfect partner to help us on the next stage of our growth journey. Their support and expertise will help us to further develop our service offerings and identify acquisition opportunities to support our aim of becoming the premier quality engineering company in the UK.”
Rockpool’s investment was led by Guy Nieuwenhuys and Will Beckett.
Guy Nieuwenhuys, Investment Director from Rockpool, said “We are delighted to be partnering with Dave Kelly and the 2i team as they continue their strong organic growth and embark on a buy and build journey.
We have been impressed by their proactive investment in talented people and automation products. The business is highly innovative and takes a strategic partner approach to working with its clients. Increased digital change poses a huge risk to organisations as system failures can lead to significant financial and reputational issues for companies and their senior executives.
2i is well-placed to support, through its focus on high-quality delivery and client service”.
Paul Winterflood from MKS Corporate Finance, which supported 2i throughout the process, said: “Rockpool’s investment in 2i is a fantastic partnership for all concerned. It has been a pleasure to work with Dave and the rest of the team on this transaction and I look forward to following 2i go from strength-to-strength on the next stage of their growth journey with Rockpool’s support.”
Rockpool Investments is a private equity firm dedicated to finding opportunities for individuals to invest in private companies. Rockpool provides funding of between £5m to £15m to profitable UK-based private companies and has invested over £675m since inception.
Rockpool was advised by Stephenson Harwood (Legal), Saffery (Financial & Tax), Palladium Digital (Technology), Continuum (Organisational) and Claritas (Tax Structuring). 2i was advised by Moore Kingston Smith (Corporate Finance & Tax) and Bird & Bird (Legal).
2i is headquartered in George Street Edinburgh, with further offices in Glasgow and London. The firm specialises in helping businesses and organisations to deliver the biggest and most complex digital projects, including major software rollouts and upgrades.
Its staff embed with the client and tailor a rigorous, ongoing programme of testing and quality assurance to ensure digital projects are kept on track and deliver what they are meant to – rather than ballooning out of control while costs spiral.
