Midland document management firm EDM Group has completed a £52 million merger deal.
The Bilston-based firm has joined forces with Sala International to create one of the UK’s largest providers of outsourced information management services.
The business, which will operate as EDM Group, will offer digital mailroom, print room, document digitisation, document archiving and online document hosting systems.
The merger, which enables ECI Partners to exit its original investment in EDM Group, has been backed by private equity house LDC, which has provided a substantial injection of capital alongside debt funding provided by Lloyds Bank Corporate Markets Acquisition Finance.
The group’s customers include Avis Europe, Nationwide Building Society, Companies House, Legal & General, Grant Thornton and numerous healthcare providers including many NHS Trusts, Bupa and BMI hospitals.
It will now have the capacity to digitise 500 million documents per year, either hosting them securely online or physically storing them within the company’s secure records management facilities, which have 500 thousand square feet of storage and 50 miles of live file storage.
Sam Ferguson will take the role of chief executive. Mark Jones will be the EDM Group CFO, with Tomas Gronager, Sala International chief executive taking up the role of chief opreating officer.
Yann Souillard and Alex Clark of LDC will join the board as non-executive directors.
Mr Ferguson: “It’s great to see two high growth and ambitious information management companies join forces to leverage each other’s key strengths, in turn providing a unique proposition that is of benefit to our new combined customer base. The merger is the latest development in the ongoing growth and evolution of the company and we will continue to invest in facilities, technology and staff to build our business expertise, innovative technology and robust outsourcing capabilities.”
Yann Souillard, managing director of LDC, said: “As a result of the merger, EDM Group can now offer its customers a far more enhanced and enlarged proposition, encompassing the full spectrum of outsourced information management services underpinned by market-leading technology and processes. As companies come under increasing pressure to achieve cost efficiency and regulatory compliance, the group has an enormous opportunity to accelerate its growth and capture a larger market share.”