The Hut Group acquires hosting company UK2
The Hut Group has acquired hosting company, UK2 for an undisclosed sum.
LDC (Lloyds TSB Development Capital) originally backed a management buy out of UK2 in 2011, from Cloud Group, that was reportedly worth £47m.
Today’s deal does not include UK2 Group’s US based e-sports business, Digital Chaos, which remains under the ownership of LDC.
The Hut Group explained that the move was a “strategic opportunity” to develop the existing proprietary technology platform behind its health and beauty brands. It would also enhance its server infrastructure, programmatic development and platform security.
It said that it would “invest heavily” to back the existing UK2 management team and employee base.
“After a six year journey with LDC, this is an excellent outcome for employees, management, customers and shareholders, and an ideal strategic fit for both businesses. For an ambitious, technology-led group like THG, hosting is mission-critical - UK2 provides a well-invested, plug-in capability to strengthen and enhance their existing infrastructure and support their growth. We wish the business every success for the future,” said Simon Adcock, senior portfolio director at LDC.
It’s the latest major acquisition in a matter of weeks for The Hut Group, which in April bought Hangar Seven for sum believed to be in the region of £15m.