BUSINESS IN WALES INSIDE TODAY
DIGITAL agency Kagool has accelerated organic and acquisition-fuelled growth on its agenda after securing a £6m investment from the Business Growth Fund (BGF)
The business, established in Cardiff, and which now also has offices in London and Manchester, had grown organically under the management of founder Chris Short, who established Kagool in 1999 and stepped back from his role as chief executive to become chairman in 2016.
With BGF equity backing Kagool is now exploring strategic acquisition opportunities, having driven a 50% rise in revenues over the last three years. The firm employs 70.
As part of the investment, Sally Tilleray has joined the board as nonexecutive chairman, bringing extensive digital agency and M&A experience from her time at Huntsworth plc.
Chief executive of Kagool Dan Berry, who joined the business in 2012, said: “We are extremely excited to be partnering with BGF through this investment.
“The Kagool team has a huge amount of energy for the next phase of growth, having excelled in recent years in our mission to be one of the best Sitecore agencies in the UK.
“BGF’s track record working with other technology entrepreneurs makes them the perfect match for the next phase of our journey.”
Mr Short said: “It is incredible to see the business I founded 21 years ago reach this stage where Kagool’s long-term strategy is backed by such solid investment from BGF.
“We received multiple offers from other investors but BGF was both flexible and innovative in their approach and were able to deliver on a deal that perfectly suited my own ambitions and those of Dan Berry and the team.
“Through this investment, we have in place a fantastic shareholder base, a strong board, and exciting times ahead.”
Daniel Tapson, an investor at BGF who will join the board of Kagool, said: “Kagool has demonstrated impressive growth in recent years, becoming a true industry leader through a proven track record of growth, customer satisfaction and well-deserved accolades.
“The firm’s services in enhancing the digital experience of their clients’ online presence is now ever more important for businesses amid the challenges presented by the Covid-19 pandemic.”
The deal was led for BGF by Daniel Tapson, Hannah Waters and Alex Garfitt.
The advisers to the transaction were: BGF: Geldards (legal), WY Partners (financial due diligence), O’Brien & Partners (tax).
Kagool: Cowgills (corporate finance and tax), Blake Morgan (legal)