Background
In January 2024, Cadence backed David Fogelman and his team in acquiring the SCCI Group in a c£70m transaction.
The company
SCCI is a specialist provider of In-Building Networks and related services across a range of Residential and Commercial customers. Its technical-led services include installation, maintenance and monitoring of systems, hardware and software covering among others: Fire and Life Safety, Media/Entertainment Systems, Patient information and a host of other “Connected Building services”.
The group, with HQ in Harlow Essex, are experts in Multi-Dwelling Units and other complex environments. They serve blue-chip clients ranging from Social and Private Housing operators to Corporate clients (including Hospitality and Healthcare), and Telcos/Alternative Network Operators.
With revenues of c£90m and c450 staff operating from 8 offices, SCCI is a trusted supplier of scale, enjoying long customer tenure. SCCI’s success is founded on meeting its customers’ evolving service, quality and technological needs, as well as their increasing regulatory requirements – the latter being particularly relevant in the Fire & Life Safety sector.
SCCI also has a track record of technical innovation. A recent example being its 4Fibre proposition which can sharply reduce Fibre installation costs and provide significant other benefits for MDU landlords and residents.
Opportunity
Increased adoption of converged In-Building Networks and the imminent switch-off of legacy switched Telco systems, are driving growth in connected devices and applications.
With focus on the “Connected Future”, SCCI is one of the few operators with the scale and breadth of capabilities to install, maintain and manage/monitor these increasingly complex In-Building systems.
From its stable base, Cadence believes SCCI is attractively positioned to capitalise on resulting opportunities for further organic growth, including into new markets, and accretive M&A, in the process further increasing the share of recurring and reoccurring revenues.
Based on these solid foundations, Cadence is looking forward to supporting the team’s ambitious long term growth plans.
Cadence difference
With a track record in supporting growing specialist Applied Technology businesses, most recently Aquam Water services (out-sourced services to the Water industry including network sensors, asset tracking and data visualisation), Cadence is ideally placed to assist management take the business on the next stage of its growth path.
This assistance will cover both improving operational and financial performance but also driving the strategic framework required to evolve the currently diverse services offering across current and future target markets.
The group has a track record of technical innovation and Cadence will work with management to deepen the technical sophistication of its product offering.
Whilst the emphasis will be on organic growth, Cadence will work with SCCI to accelerate growth through both tactical and more strategic M&A.
Reliable partner
This relatively complex cross border transaction completed in June 2020 during the first Covid lockdown, a time of great uncertainty.
We continued to believe in the opportunity and, maintaining a constant dialogue with the vendors, were able to offer an attractive, innovative deal structure meeting all parties’ objectives.
This demonstrates that Cadence can be a supportive and reliable partner for the right opportunity regardless of the circumstances.