1st October 2024
Deciding to work with a private equity investor is a significant decision for business owners, and choosing the right partner is key. Investing behind businesses is also a big decision for us, and this 'Behind the Partnership' series we will showcase some of the founders that we have worked with, the businesses they have built, and why we chose to partner with them.
In this edition, we will talk about our partnership with NoBlue2, Europe’s leading NetSuite and Microsoft Dynamics 365 partner.
NetSuite: a fast-growing ERP ecosystem ripe for consolidation
We are a specialist investor in software, data, and software services companies. We partner with businesses that have achieved success with little or no external capital and support the next phase of their growth - what we call second-stage growth - through strategic focus and investment in people, products, and processes.
We first spotted the opportunity in enterprise resource planning (ERP) back in 2018. We realised that businesses were rapidly moving their ERP systems to the cloud, and needed specialist implementation partners to help them navigate the transition. These partners are growing quickly as a result and make for attractive businesses due to their predictable revenue and impressive margins.
After making successful investments in TNP, a Microsoft partner, and then Codestone, an SAP partner, we turned our eye to NetSuite, a “cloud-native” ERP vendor. NetSuite is a high-growth product with a developing, but fragmented channel ecosystem consisting almost exclusively of smaller, founder-owned businesses. We saw an opportunity to bring several of these partners together to build the standout market leader in Europe.
NoBlue: Europe’s leading NetSuite partner
We first met Ian Irwin in 2022. Ian is a well-respected entrepreneur and NetSuite consultant, who built NoBlue into the leading independent NetSuite partner in the UK, evidenced by their EMEA Partner of the Year award that year. We approached Ian directly to see if he would be interested in exploring a conversation.
Throughout our discussions, it became clear that Ian shared our vision for NoBlue, and that he held the credibility and technical skillset needed to build a market leader. NoBlue served and continues to serve a wide range of blue-chip customers and consistently grew at 20%+ every year whilst achieving healthy margins.
We agreed that we would begin engaging with other partners to understand the broader appetite to join and build the market-leading group.
Elevate2: an innovative approach to service delivery
Leaning on Ian’s market knowledge, we earmarked a handful of other partners as “high priority” based on their growth, reputation, consulting capability, and customer base. One of these partners was Elevate2, led by proven entrepreneurs Alex Lester and Dave Kennett.
Although a smaller business than NoBlue, Elevate2 had built a skilled pool of consultants across the UK and the Philippines able to deliver NetSuite implementations and support at high margins. This capability complemented NoBlue's sales engine and scale, and Alex and Dave agreed to partner with us and Ian to bring the group together. In 2023, our investment in NoBlue and Elevate2 was completed, leading to the creation of NoBlue2.
A winning combination
Soon after NoBlue2 was formed, a second “high priority” business, Brightbridge, joined the group. The acquisition brought further NetSuite scale and expertise, and additional products like Microsoft Dynamics 365, Tipalti and Jitterbit, to offer other relevant solutions to the group’s 400+ customers.
Since our investment, NoBlue2 has become an integrated business, and consistency and best practice has been driven across the group in sales, delivery and technology. Now operating as one cohesive unit, NoBlue2 is focused on accelerating new business wins through investments in its sales and account management teams.
The vision we share with Ian, Alex, and Dave for NoBlue2 is clear: to be the leading provider[~M8] [DW9] of cloud-first business applications to mid-market customers, with NetSuite at the core of our offering. We have worked with the founders to build a talented team around them, including Chris Bunch (Group CEO) and Richard Flint (Group CFO) in pursuit of our shared ambitions:
- Doubling the customer base over the next 3 years
- Expanding the product offering to include more cloud native solutions to customers.
- Develop in-house apps which enhance users’ experience of Netsuite products, particularly within certain sectors.
- Enhance our global delivery capabilities by hiring and retaining leading consultants and developers, to ensure 24/7 service and support for our customers.
- Accelerate growth and capabilities through further acquisitions, both in terms of product and service offering as well as geographically.
Looking ahead
We look forward to continued success with the NoBlue2 as we continue to navigate the opportunities and challenges of second-stage growth in partnership with the team.
To learn more about NoBlue2, visit their website at NoBlue2, or contact Dan Walker, Partner and NoBlue2 investment lead.