LMS supports Updata UK MBO

UK investment firm LMS Capital has acquired a majority stake in Updata Infrastructure UK as part of a £6.2m management buyout (MBO).

Updata, a broadband network provider and manager for the public sector, was sold by 60% stakeholders Updata Europe of Denmark. Following the MBO, LMS will hold a 53.3% stake, with the management and other existing shareholders taking the remainder.

The company recorded a £5.1m turnover as to June last year, with a profit of £0.1m. Unaudited accounts for 2009 report a £1.6m profit, making the price LMS paid approximately 5x EBITDA.