Cloud-based communications technology supplier babble is targeting growth in travel after the acquisition of Arden Group doubled revenue and customer base.
The acquisition of Birmingham-based Arden Group was confirmed today for an undisclosed sum and gives babble its first office outside of London.
Travel clients in the babble portfolio include operators such as Secret Escapes and Attraction Tickets Direct and hotel operators such as Park Plaza and Guoman Hotels.
The firm said travel is a sector it is focused on building as part of its strategic expansion.
It added the Arden deal will add strength in mobile and IT managed services to babble’s existing unified communication (UCaaS) and cloud-based contact centre solutions (CCaaS).
It will also double babble’s revenue to nearly £20 million and create a combined client base of more than 1,200 customers.
The business has been backed by leading mid-market private equity firm LDC since October 2017 and this is the second acquisition babble has made this year following the acquisition of Direct Response Plus, formerly part of the Yonder Digital Group of companies.
Matt Parker, chief executive of babble, said: “It’s unusual to get a chance to double the size of a business with a single acquisition but with our purchase of Arden Group we have done exactly that.
“More importantly we’ve significantly strengthened our product portfolio, added real talent to the leadership and management teams and given ourselves a great footprint outside London with a team that has built a loyal and highly referenceable customer base.
“This feels more like a merger than an acquisition in that we are bringing two highly complementary businesses together and I am very excited about the future as one team.”
Nigel Walker, Arden Group’s former managing director and majority owner, said: “It gives me great pride and pleasure to have built up Arden Group into the organisation it is today, but even more to know that Matt and his team will protect that legacy.
“The two organisations are an extremely good fit, our cultures are aligned, Arden’s product portfolio is entirely complementary, and I am confident knowing that our customers will continue to receive the standards of care and attention we have always delivered.”
Alex Clark, investment director at LDC, and member of the babble cloud board, added: “The acquisition of Arden Group will continue to strengthen babble’s core proposition, as well as extend the business’ span across the UK.
“Since partnering with Matt and the team, we have been actively looking to drive scale in what is a highly competitive market and this second acquisition in our first year of partnership forms part of a wider ongoing growth strategy as we look to build a business with longstanding value.”